Salary sacrifice pension calculator UK
Compare pay before and after pension salary sacrifice for 2026/27. Estimate Income Tax and NI savings with UK country bands and an adult minimum-pay check.
Enter your figures
Annual tax and NI saved
Inputs changed. Select Calculate result to update your estimate.
2026/27 employment estimate, category A, age 21+ and below State Pension age. Assumes one job and no other deductions. The tool rejects a post-sacrifice salary below the adult minimum-wage estimate. Check your actual pay-reference-period compliance and pension allowance with your employer. Employer NI savings are not added to your pension.
How the salary sacrifice pension calculator uk works
Compare Income Tax and annualised employee NI on original and reduced salary. Pension contribution equals sacrificed salary.
UK data and rules
2026/27 data · Checked 16 October 2026. Rules are a dated snapshot, not a live feed.
- HMRC — Income Tax rates and allowances
- HMRC — Scottish Income Tax
- HMRC — 2026/27 employer rates and thresholds
- HMRC — Salary sacrifice
Read about data coverage and updates
Worked example: pension salary sacrifice
This illustration uses the calculator’s example inputs. It is not a quote or a recommended financial decision.
- Annual gross income (£)
- 45,000
- Annual salary exchanged for pension (£)
- 3,000
- Paid hours per week
- 37.5
- Country for tax purposes
- England
Annual tax and NI saved: £840.00
Compare Income Tax and annualised employee NI on original and reduced salary. Pension contribution equals sacrificed salary.
Pension salary sacrifice: questions answered
Does salary sacrifice mean my pension contribution costs nothing?
No. Your take-home pay normally falls by the sacrificed amount less the tax and NI saved. The calculation shows both the pension contribution and the estimated take-home reduction.
Using your result
Example inputs are a starting point. Replace them with your figures and select Calculate result. Results are rounded for display; calculations use unrounded values.
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