Pension Salary Sacrifice Comparison
Compare how pension contribution methods can affect take-home pay and the amount reaching your pension. Use the same salary and contribution target to understand the difference between salary sacrifice, net pay and relief at source.
Calculation breakdown
How to use this tool
- Choose the tax year and tax nation.
- Enter salary, contribution target and employer terms.
- Compare payroll impact with pension funding, keeping later tax relief separate.
How the result is calculated
Salary sacrifice changes cash salary in exchange for an employer pension contribution. Other methods handle tax relief differently, so a simple percentage shortcut may not reproduce the payslip.
Worked example
Sacrificing £3,000 from a £40,000 salary leaves £37,000 contractual cash salary before payroll deductions. The take-home reduction depends on the applicable tax and NI rules.
What this result does not cover
Employer participation is required. Pension limits, minimum-wage rules and effects on salary-linked benefits can affect suitability.
Questions people ask
Does every employer share its NI saving?
No. Enter only the share your employer confirms.
Is relief at source the same as salary sacrifice?
No. The contribution and payroll treatment differ.
Is the pension amount my take-home cost?
Not necessarily. Tax and NI treatment can change that cost.
Supported scope and official sources
2026/27 annual payroll illustration, NI category A and standard personal allowance. No benefits-in-kind, tax-code adjustments or pay-period payroll certification.
- www.gov.uk — salary sacrifice and the effects on paye
- www.gov.uk — rates and thresholds for employers 2026 to 2027
- www.gov.uk — scottish income tax
- www.gov.uk — national minimum wage rates
- www.gov.uk — annual allowance
Source snapshot: 21 October 2026. Independent specialist review is pending. Calculations do not confirm eligibility or replace official decisions.