Salary Sacrifice Calculator UK 2026/27
Salary sacrifice · 2026/27
Every £1 in your pension costs you just £0.38.
On a £120,000 salary, sacrificing 5% costs £2,280 from take-home and puts £6,000 into your pension. Tax and NI cover the gap.
You give up
-£2,280
£190 less per month
Your pension gets
£6,000
2.63× what it costs you
Cost per £1 in pot
£0.38
62% from tax, NI
Your employer also saves £900 of NI on the sacrifice. Some schemes pay that saving into your pension too.
Try another amount
What if you sacrifice more or less?
£0.38 per £1
At this level, your pension gets £6,000 for £2,280 less take-home pay.
2.63× reaches your pension for every £1 you give up.
Why this works
You swap taxable pay for pension money.
Salary sacrifice lowers your pay before income tax and National Insurance are taken. Your payslip goes down, but more of the same gross income reaches your pension instead of HMRC.
Your employer also saves £900 of NI here. Some schemes add that saving to your pension, so it is worth asking payroll.
Tax and NI breakdownYou save £3,720 before any employer match.+
No sacrifice
£76,157
take home pay a year
£6,346 a month
After sacrifice
£73,877
take home pay a year
£6,156 a month
Take home a year
-£2,280
Tax + NI saved
+£3,720
Pension and employer money£6,000 goes into the pension.+
Employer NI saving from this sacrifice: £900.
Annual allowance£54,000 of the standard allowance remains.+
Used this year
£6,000
Remaining
£54,000
Employer included
£0
The standard annual allowance is £60,000. This does not model carry-forward, DB pension input amounts or the tapered annual allowance.
Assumptions and limitsSimple salary sacrifice estimate using published UK rates.+
This is an educational estimate for the 2026/27 tax year. Payroll rules, scheme design, carry-forward allowance and tapered annual allowance can change the answer.
Next useful routes
Salary sacrifice · 2026/27
Every £1 in your pension costs you just £0.38.
On a £120,000 salary, sacrificing 5% costs £2,280 from take-home and puts £6,000 into your pension. Tax and NI cover the gap.
You give up
-£2,280
£190 less per month
Your pension gets
£6,000
2.63× what it costs you
Cost per £1 in pot
£0.38
62% from tax, NI
Your employer also saves £900 of NI on the sacrifice. Some schemes pay that saving into your pension too.
Next useful routes
Where the pension money comes from
62% effective reliefThe wider the orange and green slices, the less each £1 in the pot costs you.
£2,280
£3,720
What goes into the pot
Your employer's saving
They save £900 in National Insurance because of your sacrifice. Some employers pay this into your pension too. Ask HR if yours does.
Annual allowance tracker
Standard £60,000 limit
Used this year
£6,000
Remaining
£54,000
Employer included
£0
The used figure includes your contribution plus employer money shown in this calculator. It does not include other pension schemes, defined-benefit input amounts or carry-forward allowance.
Your pay, before and after
No sacrifice
£76,157
take home pay a year
£6,346 a month
After sacrifice
£73,877
take home pay a year
£6,156 a month
What changes
Take home a year
−£2,280
Take home a month
−£190
Tax + NI saved
+£3,720
Try different amounts
0% to 25%
Move the slider to see what changes.
You give up
£2,280
in take home pay
Pension gets
£6,000
2.63× what you gave up
Estimates onlyShowHide
Calculations use HMRC published rates for education and illustration. They are not regulated financial, tax, or legal advice. Verify against your own tax position before filing or making financial decisions.