Pension Salary Sacrifice Calculator UK 2026/27

Pension salary sacrifice is one of the most tax-efficient ways to save for retirement. Enter your details below to see your savings.

Pension Sacrifice Details

Enter your salary and pension contribution

Gross Annual Salary *

Annual Pension Sacrifice Amount

Employer Pension %

Tax Region

Tax Year

Your Pension Sacrifice Savings

Based on £50,000 salary with £6,000 pension sacrifice

Gross Salary—

Pension Sacrifice—

Adjusted Taxable Salary—

Income Tax Saved—

NI Saved—

Total Annual Saving—

Monthly Saving—

Total in Pension (incl. employer)—

Your Annual Tax + NI Saving

£0

Employer also contributes £0

Estimate only. Not financial advice. Consult a qualified pension adviser.

💰 Full Salary Sacrifice Calculator 🏢 Employer NI Savings

Pension Salary Sacrifice FAQs

Instead of making pension contributions from net pay, your employer deducts them before tax. This means you receive full tax relief automatically at your marginal rate, plus you and your employer both save on National Insurance contributions.

You can contribute up to £60,000 per year to a pension (2026/27 Annual Allowance), but salary sacrifice is usually limited to your employer's scheme rules. You cannot sacrifice below the National Minimum Wage.

No, employers are not legally required to pass on NI savings. However, many do — either by adding to your pension contribution or by returning the savings as additional salary. It's worth asking your employer about their policy.

Only if your salary after sacrifice falls below the Lower Earnings Limit (£6,396 in 2026/27). Above this level, you still build up state pension entitlement normally. For most people this is not an issue.