Salary Sacrifice Pension Calculator 2026/27
See how a salary sacrifice pension contribution changes your take-home pay, and how much income tax and National Insurance it saves, using 2026/27 rates.
- Your contribution
- £0
- Employer contribution
- £0
- Total into your pension
- £0
- Income tax saved
- £0
- National Insurance saved
- £0
- Take-home pay after
- £0
How the calculation works
The calculator works out your income tax and employee National Insurance twice: once on your full salary and once on your salary after the sacrifice. The difference is what the contribution saves you, and the fall in take-home pay is what it actually costs.
Rates used
- Personal allowance £12,570, reduced by £1 for every £2 of income above £100,000.
- Employee National Insurance 8% between £12,570 and £50,270, and 2% above.
- Income tax bands for England, Wales and Northern Ireland, or Scotland, as shown on the take-home pay calculator.
Things this calculator does not include
- Student loan repayments or tax codes other than 1257L.
- Employer National Insurance savings passed on to you.
- The pensions annual allowance, which limits tax-relieved contributions.
Read the Money Helper pension guidance for free, impartial information.
Frequently asked questions
What is salary sacrifice?
You agree with your employer to give up part of your salary in exchange for a pension contribution paid by the employer. Because your pay is lower, you pay less income tax and National Insurance on it.
How much does a £100 pension contribution really cost me?
For a basic-rate taxpayer it is typically about £72 of take-home pay (20% tax and 8% National Insurance saved). Higher-rate taxpayers see a bigger saving; the calculator shows your own figure.
Does salary sacrifice affect other things?
It lowers your contractual salary, which can affect mortgage affordability, some benefits and statutory pay. Your pay after sacrifice must stay at or above the National Minimum Wage.
Does this include my employer's National Insurance saving?
No. Some employers pass part of their own saving on as an extra pension contribution. Enter that in the employer box if yours does.
These results are estimates for general information only and are not financial or tax advice. See our disclaimer.