Salary Sacrifice Calculator
Salary Sacrifice Breakdown for £0 Per Year
Compare before-and-after pay for the 2025/2026 tax year.
Income tax saved
£0
National Insurance saved
£0
Total saved
£0
Pension contributions increase by £0 per year and take-home pay is up by £0.
| Before sacrifice | After sacrifice | Change | |
|---|---|---|---|
| Gross salary | £0 | £0 | £0 |
| Employee pension contribution | £0 | £0 | £0 |
| Salary sacrificed (extra) | £0 | £0 | £0 |
| Total pension contribution | £0 | £0 | £0 |
| Taxable income | £0 | £0 | £0 |
| Income tax | £0 | £0 | £0 |
| National Insurance | £0 | £0 | £0 |
| Total deductions | £0 | £0 | £0 |
| Net income (after deductions) | £0 | £0 | £0 |
See how salary sacrifice changes your take-home pay
Salary sacrifice lets you swap part of your salary for a pension contribution. This reduces the pay that is subject to Income Tax and National Insurance, which can increase your overall savings while boosting your retirement pot.
This calculator assumes the standard UK tax code and no student loan repayments. If you want a full pay breakdown with different tax codes or deductions, use the take home salary calculator.
Benefits of salary sacrifice
Salary sacrifice schemes can be a tax efficient way to boost your pension while reducing deductions from your pay. Common benefits include:
- Lower Income Tax and National Insurance because your taxable pay is reduced.
- Higher pension contributions without increasing your net out of pocket cost.
- Employer savings on National Insurance, which some employers share back into your pension.
- A simple way to increase retirement savings without changing your gross salary.
How salary sacrifice works
With salary sacrifice, you agree to give up part of your cash pay. Your employer then pays that amount into your pension. Because the sacrificed portion is removed from your taxable salary, you typically pay less Income Tax and National Insurance. The result is that more of your money ends up in your pension for the same or a smaller reduction in take home pay.
This calculator shows an estimate of those savings using your selected tax year and inputs. It assumes a standard tax code and no student loan unless you use the full take home calculator, which is better for detailed comparisons.
Things to consider before you sacrifice salary
Salary sacrifice lowers your contractual cash pay, so it can affect calculations that are based on salary such as overtime rates, some mortgage affordability checks, and certain employer benefits. It can also influence statutory pay like sick pay, maternity pay, or redundancy pay in some schemes. It is worth checking how your employer treats these areas before making changes.
There is also a legal minimum. Your cash pay after salary sacrifice must still meet the National Minimum Wage or National Living Wage for your age group based on your hours. This is why the calculator includes a minimum wage warning when the sacrifice would reduce hourly pay below the legal limit.
Who can benefit the most
Employees paying basic or higher rate tax often see the biggest savings because both Income Tax and National Insurance apply to their income. If your employer shares their National Insurance savings, your pension can be boosted even further. The calculator makes it easy to test different percentages or amounts to see what works for your budget.
For quick estimates, use your annual salary, the amount you want to sacrifice, and your weekly hours. For a full pay breakdown across monthly, weekly, and yearly figures, compare your results with the take home salary calculator.