Salary Sacrifice Calculator
See how much a pension salary sacrifice really costs your take-home pay in 2026/27.
About the Salary Sacrifice Calculator
With salary sacrifice you give up part of your salary and your employer pays it into your pension. You save income tax and National Insurance on the amount, and so does your employer. It can also bring income back under £100,000 to restore the personal allowance. From April 2029 the NI saving will be capped at £2,000 a year of sacrificed pay.
The formula
Cost = take-home before − take-home after
Worked example
Example: Cost to your take-home = £3,190
- Inputs: Salary: £61,000; Amount sacrificed into your pension (yearly): £5,500; Where you live: England, Wales, NI.
- Formula: Cost = take-home before − take-home after
- Result: Cost to your take-home = £3,190
Questions people ask
Can it go below minimum wage?
No, your remaining pay must stay at or above the National Minimum Wage.
Does it affect mortgages or benefits?
Lenders may see lower salary, and statutory pay may be affected.