Salary Sacrifice Calculator 2026/27 (pension)
Find out how much each pound you sacrifice into your pension actually costs you in take-home pay, once tax and National Insurance savings are counted.
Estimates for information only, using 2026/27 rates for England, Wales and Northern Ireland unless stated. Not financial or tax advice; check your own situation with HMRC or a qualified adviser.
How it works
With salary sacrifice you give up part of your salary and your employer pays it into your pension instead. Because your pay is lower, you pay less income tax and National Insurance.
For a basic-rate taxpayer, Β£100 sacrificed typically costs about Β£72 in take-home pay. For a higher-rate taxpayer it's about Β£58, and between Β£100k and Β£125k it can be under Β£40.
Some employers also add the employer NI they save into your pension, making it even better value.
Frequently asked questions
Does salary sacrifice affect my mortgage?+
Lenders may see the lower salary, so check before applying for a mortgage.
Can salary sacrifice take me below the minimum wage?+
No, your cash pay can't be reduced below the National Minimum Wage.