Pay & tax
Salary sacrifice take-home pay calculator (2026/27)
See how a pension salary sacrifice changes your estimated UK take-home pay in 2026/27. Compare annual and monthly pay before and after the contribution.
How it works
Enter your annual salary and the annual amount you would sacrifice into a registered workplace pension. The calculator estimates pay with no sacrifice and with that pension contribution, using the same tax code, region and student-loan plans in both cases. It shows the pension amount, the drop in take-home pay and the reduction in deductions. Salary sacrifice reduces contractual cash pay before Income Tax and National Insurance are calculated. Your employer must offer and agree to the arrangement. For bonuses, overtime or other deductions, use the full UK take-home pay calculator.
Frequently asked questions
What does the comparison show?
It shows estimated take-home pay without pension salary sacrifice, take-home pay with your chosen contribution, the resulting drop in pay, and the amount paid into your pension. Daily, weekly and monthly figures are averages of the annual estimate.
Does salary sacrifice reduce both tax and National Insurance?
A valid pension salary sacrifice reduces contractual cash pay before Income Tax and employee National Insurance are calculated, so it can reduce both. The actual effect depends on your salary, tax code and tax bands.
Why can student-loan repayments fall?
Payroll student-loan repayments are based on pay after salary sacrifice. A lower repayment can mean a higher outstanding loan balance later; it is not necessarily a permanent saving.
Can salary sacrifice take pay below minimum wage?
No. Your employer must ensure the arrangement does not reduce pay below the applicable minimum wage. This annual calculator does not know your working hours or pay periods, so it cannot check that limit.
Does this include employer pension contributions?
No. It shows the amount you choose to sacrifice and your estimated employee take-home pay. Any extra employer contribution, including a share of employer National Insurance savings, depends on your scheme and is not included.
How precise is the estimate?
It uses the site’s 2026/27 UK annual Income Tax, National Insurance and student-loan model. Actual payroll can differ because of pay-period timing, tax-code changes and scheme rules. It is a planning estimate, not a payslip.
Method: published UK 2026/27 tax year rates. This is an estimate, not tax advice. How our calculators work.