Salary Sacrifice Calculator UK
Calculate how much income tax and National Insurance you save with salary sacrifice into a pension or other scheme. See how a contribution costs you less in take-home pay than the amount that goes in.
Calculator
What this means
Salary sacrifice swaps part of your gross salary for a benefit such as pension contributions. Because the swap happens before tax and National Insurance, you save both — so the real cost to your take-home pay is less than the amount you contribute.
Frequently asked questions
You give up part of your gross salary before income tax and National Insurance are calculated, so you pay less of both. A basic-rate taxpayer typically saves 28% (20% tax + 8% NI) on the sacrificed amount.
A lower gross salary can reduce mortgage borrowing, statutory maternity or sick pay and some benefits. You also can't sacrifice below the National Minimum Wage.
Yes. Common schemes include electric car leasing, cycle-to-work and additional pension contributions. The tax treatment varies, so check how each scheme works.
Disclaimer
This calculator provides estimates for guidance only. It is not financial, legal or tax advice. Always check official sources or speak to a qualified professional before making decisions.
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