takehomecomp
PAY TOOLS · 2026/27

Pension salary sacrifice calculator 2026/27

Start with salary sacrifice selected, then change your pension percentage. The result compares your chosen contribution with no employee pension contribution. You can also select net pay or relief at source to see how those methods differ.

UK-wide, including Scotland · Updated 23 September 2026

Enter your pay details

01

Start with your pay

Choose your main home, not your workplace. Scotland has different Income Tax rates. If you moved during the tax year or have homes in different UK countries, check your tax status.

Start with your annual salary before tax. Leave bonus at £0 if you do not receive one. The figures shown initially are an example—replace them with your own.

02Pension 5% included · tap to check or change

Enter your contribution from your pension statement. Set it to 0% if you do not contribute. Check the method with payroll if unsure. Employer contributions are optional and do not reduce your pay.

What do these pension methods mean?
  • Salary sacrifice: you give up part of your salary and your employer pays it into your pension.
  • Net pay: your contribution is taken before Income Tax, but after National Insurance is worked out.
  • Relief at source: your contribution comes from pay after tax. Your pension provider adds tax relief.

If you are unsure, ask payroll which method and salary basis they use. Choosing the wrong one changes the estimate.

Salary sacrifice reduces Income Tax, NI and relevant loan earnings. Your employer must keep pay above minimum wage.

03Student loans No undergraduate loan · tap to change

No student loan? Skip this section. Otherwise select the plan shown in your Student Loans Company account.

Which student loan plan am I on?

Use your funding body and course start date, not the location of your university. Check your Student Loans Company account if unsure.

  • Plan 1: Student Finance England or Wales, course started before 1 September 2012; or Student Finance Northern Ireland.
  • Plan 2: Student Finance England, undergraduate/PGCE course started 1 September 2012–31 July 2023; or Student Finance Wales, undergraduate/PGCE started from 1 September 2012. England’s Higher Education Short Course Loans also use Plan 2.
  • Plan 4: Student Awards Agency Scotland funding, including postgraduate study.
  • Plan 5: Student Finance England, undergraduate/PGCE course started from 1 August 2023. Advanced Learner Loans follow England’s relevant start-date rules.
  • Postgraduate: England/Wales master’s or doctoral loan. Tick the separate box; it can apply alongside another plan.

Check your plan on GOV.UK. Older mortgage-style loans are not modelled here.

Your loan plan depends on your funding, not where you live now. For multiple undergraduate plans, use the lowest applicable threshold.

04Workplace shares & charity None included · optional

Leave these switched off unless you participate or want to explore joining. Switch on a scheme, then enter its monthly contribution.

SIPShare Incentive Plan

Buy partnership shares from gross pay.

Income Tax + NI relief
SAYESave As You Earn

Save towards shares through your employer.

From take-home pay
GAYEGive As You Earn

Give to charity through Payroll Giving.

Income Tax relief

What your pension costs in cash

Where your gross pay goes

Every slice is part of your pay. Employer contributions and provider tax relief are shown separately below.

  • Take-home pay£2,858.3076.2%
  • Income Tax£503.0013.4%
  • National Insurance£201.205.4%
  • Pension from pay£187.505%
Gross pension contribution£187.50
Reduction in take-home pay£135.00
Income Tax reduction in payroll£37.50
Employee NI reduction£15.00
Reduction in loan repayments£0.00
Potential additional relief to claim£0.00
Into your bank account£2,858.30

Compared with no employee pension contribution, keeping your other inputs unchanged. Employer pension is separate. Extra relief to claim is excluded from bank pay.

2026/27 · Using your selected UK tax region. Actual payroll deductions can differ. Lower loan repayments are not necessarily lifetime savings.

How does salary sacrifice work?

You agree with your employer to exchange cash salary for a pension contribution. For 2026/27, this can reduce the earnings used for Income Tax and employee National Insurance. Employer agreement is needed and cash pay must satisfy minimum-wage rules.

What should I check before changing it?

Check your employer’s pension basis, contribution matching and any effect on salary-linked benefits. This tool excludes pension allowance charges and does not assess minimum-wage eligibility. Pension money is not available like cash in your bank account.

The government has announced different NI treatment from April 2029. This calculator uses 2026/27 rules; it is not a forecast of the future regime. Read the announced change.

Sources: HMRC salary sacrifice guidance and our full methodology.

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