Salary Sacrifice Calculator
Updated on 22 Oct 2026 · Checked by Aotob
Sacrificing 5% puts £2,750 in your pension but only costs £1,595 of take-home.
You save £1,155 a year in tax and National Insurance.
It costs you
£1,595a year
Every £1 into your pension costs you £0.58. From April 2029 only the first £2,000 a year of pension sacrifice will be free of National Insurance.
Show the working
Take-home 42,457 − 40,862 = 1,595 for 2,750 into the pension
By sacrifice
| Sacrifice | Into pension | Costs you |
|---|---|---|
| 2% | 1,100 | 638 |
| 3% | 1,650 | 957 |
| 5% | 2,750 | 1,595 |
| 8% | 4,400 | 2,552 |
| 10% | 5,500 | 3,298 |
| 15% | 8,250 | 5,278 |
Questions people ask
What is salary sacrifice?
You give up part of your salary and your employer pays it into your pension. You pay no income tax or National Insurance on it.
Is it better than a normal pension contribution?
Usually, because you also save National Insurance (8% or 2%), and some employers add their 15% NI saving too.
Is anything changing?
From April 2029 only the first £2,000 a year of pension salary sacrifice will be free of National Insurance.
Updated 22 Oct 2026Source: Each country’s 2026 tax rules, checked October 2026Checked by AotobEngland, Wales and NI rates for 2026-27.Report an issue