Pensions · Free Calculator · 2026/27

Salary Sacrifice Calculator, your exact saving for 2026/27

Enter your salary and monthly pension contribution to see how much you save in income tax and National Insurance, the net cost of your contribution, and how the April 2029 cap will affect you.

2026/27 tax and NI rates
Income tax + NI saving
2029 cap impact
Free forever
1
Your salary
Annual gross salary
£
2
Your contribution
Monthly pension contribution (salary sacrifice)
£
Enter what comes out of your salary each month before tax.
3
Tax region
4
Employer NI sharing
Does your employer share their NI saving?
Many employers pass on their 15% NI saving as an extra pension contribution. Check with HR.
ANNUAL EMPLOYEE SAVING
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per year
Monthly saving
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Net cost per £1 in pension
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Monthly net cost
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Where the saving comes from
2026/27 rates
Item
Annual
Monthly
April 2029 change
NI cap on salary sacrifice
How the calculation works
IT

Income tax relief is included automatically

Salary sacrifice reduces your gross salary before tax is calculated, so you pay tax on less income.

NI

The April 2029 NI cap applies to employee contributions only

Employer pension contributions outside salary sacrifice remain fully NI exempt. Income tax relief is unchanged.

i

A lower gross salary may affect other entitlements

A lower gross salary may affect mortgage borrowing, Statutory Maternity Pay, and Statutory Paternity Pay. Check with your employer before making changes.

Using 2026/27 income tax and NI rates. 2029 cap: £2,000 NI-exempt per year. Read the full salary sacrifice guide
Frequently asked questions
Does my employer have to offer salary sacrifice?
No. Salary sacrifice is a contractual arrangement between you and your employer. Your employer must agree to it. Most large employers offer it, but smaller employers may not. If yours does not, personal contributions to a relief at source pension still give full income tax relief.
Is salary sacrifice better than a personal pension contribution?
For most people, yes, because salary sacrifice also saves National Insurance on the contribution. The only exception is if the sacrifice would reduce your salary below National Minimum Wage, or if your employer does not offer it.
What does the April 2029 NI cap mean for me?
From April 2029, only the first £2,000 of salary sacrifice pension contributions per year will be exempt from employee National Insurance. Contributions above that level will attract NI at the standard rates. Income tax relief is completely unaffected. If your annual contribution is £2,000 or below, the cap does not affect you.
Does salary sacrifice reduce my adjusted net income?
Yes. Salary sacrifice reduces your gross salary before income tax and NI are calculated, and this lower figure is used for adjusted net income purposes. This is important for the High Income Child Benefit Charge, the personal allowance taper above £100,000, and Tax-Free Childcare eligibility.
Try the salary sacrifice guide
Understand how salary sacrifice works and what is changing in April 2029.
Read the guide