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£Salary Take Home UK

Salary Sacrifice Calculator UK 2026/27

See the income tax and National Insurance savings from salary sacrifice pension contributions.

£
£

e.g. pension contribution

Annual Sacrifice

£2,400

Tax Saving

£480

NI Saving

£192

Net Annual Cost

£1,728

Salary sacrifice reduces your taxable income and NI-able earnings, saving £672/year. Your net pension contribution is only £1,728/year for £2,400/year into your pension.

Salary sacrifice is one of the most tax-efficient ways to save for retirement in the UK. Unlike standard pension contributions, salary sacrifice reduces your taxable income and NI-able earnings, saving you money on both taxes.

How It Works

With salary sacrifice, you agree to reduce your gross salary. Your employer pays the difference as an employer pension contribution. Example on a £40,000 salary, sacrificing £200/month (£2,400/year): - Tax saving (20%): £480/year - NI saving (8%): £192/year - Total annual saving: £672 - Net cost of £2,400 pension contribution: just £1,728/year The savings are even greater for higher-rate taxpayers: - Tax saving (40%): £960/year - NI saving (2%): £48/year - Total saving: £1,008/year

Frequently Asked Questions

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