Pension salary sacrifice calculator
Pension salary sacrifice calculator for 2026/27: compare salary sacrifice with relief at source and see the effect on your take-home pay.
You take home
£2,288a month
- a year
- £27,460
- a week
- £527
- a day
- £106
- Take-home£2,28878%
- Income tax£34512%
- National Insurance£1385%
- Pension£1465%
Amounts are per month. Percentages are of your pay before tax.
Of your next £1,000 you keep £684.
Your breakdown
| Item | Year | Month | Week |
|---|---|---|---|
| Gross pay | £35,000 | £2,917 | £673 |
| Income tax | -£4,136 | -£345 | -£80 |
| Basic 20% on £20,680 | -£4,136 | -£345 | -£80 |
| National Insurance | -£1,654 | -£138 | -£32 |
| Pension | -£1,750 | -£146 | -£34 |
| Take-home | £27,460 | £2,288 | £527 |
Personal Allowance used: £12,570.
Salary sacrifice: the pension comes out of your pay before tax, National Insurance and student loan are worked out.
This is an estimate for a standard employee on a cumulative tax code. Your payslip can differ if you have benefits, other income or an emergency tax code.
Tax code (optional)
Leave blank for the standard allowance. Works with codes such as 1257L, BR, D0, K475 and S1257L.
Salary sacrifice
With salary sacrifice, your employer pays part of your salary into your pension instead. Your pay is lower, so income tax, National Insurance and student loan are all worked out on the smaller amount.
A 5% sacrifice on £35,000 puts £1,750 in your pension and leaves £27,460 a year, which is £2,288 a month. Without it you would take home £2,393 a month.
Relief at source
With relief at source you pay into the pension from your take-home pay. Your provider claims 20% basic rate tax relief from HMRC and adds it to your pot.
We assume the percentage you enter is the total going into your pension. You pay 80% of it from take-home pay and the provider claims the other 20%. We also assume you claim back any extra relief at higher rates, so the figure matches salary sacrifice for tax. A 5% contribution on £35,000 leaves £27,320 a year.
Relief at source does not reduce your National Insurance or student loan, which is why salary sacrifice often leaves a little more.
Questions people ask
Is salary sacrifice better than relief at source?
Usually it keeps a little more in your pocket because National Insurance is saved too. It depends on your employer and whether your pay stays above minimum wage.
Does the calculator include my employer contribution?
No. It shows what leaves your pay. Anything your employer adds on top goes into your pension and does not change your take-home.
What does 5% of salary mean?
We apply the percentage to your whole salary, not just qualifying earnings. Check your scheme rules, because some schemes use a different base.