Salary sacrifice
calculator
Most people never hear about salary sacrifice. One conversation with HR could save you thousands over your career. See exactly how much you'd save on tax and NI.
Tax & NI savings
Save income tax and National Insurance on every pound sacrificed.
Side-by-side comparison
Normal pension contribution vs salary sacrifice, laid out clearly.
Employer bonus
Many employers pass on their NI savings too, boosting your pension further.
Salary sacrifice calculator
See how much you save by using salary sacrifice for your pension instead of a normal contribution. Salary sacrifice reduces your gross pay, so you save on both income tax and National Insurance.
Your salary before tax and deductions.
Your marginal income tax rate on the amount being sacrificed.
The gross amount redirected from your salary to your pension each month.
When you sacrifice salary, your employer saves 13.8% employer NI. Some employers pass this into your pension as a bonus.
Savings by tax band
Tax: 20% + Employee NI: 8%
Tax: 40% + Employee NI: 2%
Tax: 45% + Employee NI: 2%
Plus employer saves 13.8% NI, which many pass on to you.
Common questions
What is salary sacrifice?
Salary sacrifice means you agree to a lower gross salary in exchange for your employer putting the difference straight into your pension. Because the money never hits your pay, you don't pay income tax or NI on it.
Does it affect my mortgage application?
It can. Your contractual salary is lower on paper, which some lenders may consider. However, many lenders now understand salary sacrifice arrangements. Check with your mortgage adviser.
Does everyone have access to salary sacrifice?
No. It depends on your employer offering the scheme. Not all employers do. Your salary also can't drop below National Minimum Wage after the sacrifice. Ask your HR team if it's available.
Things to know
- Not a loophole – designed to encourage pension saving
- Salary can't drop below National Minimum Wage
- May affect some income-based benefits
- Ask HR this week if it's available
- One conversation could be worth thousands
Employer refusing salary sacrifice?
If your employer offers salary sacrifice but won't let you access it, or if your pension provider is causing issues, we can help.
Start your free complaint