Salary Sacrifice Pension Calculator (2025/26)
Use our free Salary Sacrifice Pension Calculator to discover how much you could save on tax and National Insurance while boosting your pension contributions. Updated for the 2025/26 UK tax year.
What is Pension Salary Sacrifice or Exchange?
Pension salary sacrifice, often called salary exchange, is a smart way to increase your pension contributions while reducing your taxable income. By agreeing to "sacrifice" or "exchange" part of your salary, your employer pays that amount directly into your pension instead. This lowers your gross income, meaning you pay less Income Tax and National Insurance (NI) – and sometimes your employer does too!
How Does the Salary Exchange Pension Calculator Work?
Simply input your gross annual salary and the amount you'd like to sacrifice or exchange into your pension. This calculator will estimate:
- Your reduced taxable income
- Tax and NI savings
- Total pension contribution (including any employer savings)
- Your new take-home pay
Frequently Asked Questions
What are the benefits of salary sacrifice?
Salary sacrifice can help you save on tax and National Insurance while boosting your pension contributions. It's particularly beneficial for higher-rate taxpayers and can be more tax-efficient than making pension contributions after tax.
Will salary sacrifice affect my take-home pay?
Yes, your take-home pay will be reduced by the amount you sacrifice, but you'll save on tax and NI. The calculator shows you exactly how this affects your net pay.
Can I change my salary sacrifice amount?
Yes, you can usually adjust your salary sacrifice amount, but this is subject to your employer's policies. Many employers allow changes during specific periods or when you have a significant life event.
Is salary sacrifice available to everyone?
Not all employers offer salary sacrifice schemes. You'll need to check with your employer if this option is available to you.