Salary Sacrifice Calculator
See how salary sacrifice schemes affect your take-home pay
Enter your total salary before deductions
For accurate tax calculations
Select your scheme type
Enter the annual amount
How to Use This Calculator
- Enter your current gross annual salary
- Select your UK region for accurate tax calculations
- Choose the type of salary sacrifice scheme
- Enter the annual amount you want to sacrifice
- View your tax and NI savings across different pay frequencies
The calculator shows how much you save in tax and National Insurance, giving you the real cost of the benefit after these savings.
Frequently Asked Questions
What is salary sacrifice?
Salary sacrifice is an arrangement where you give up part of your salary in exchange for a non-cash benefit from your employer. Because your gross salary is reduced, you pay less tax and National Insurance.
What are common salary sacrifice schemes?
Common schemes include pension contributions, childcare vouchers, cycle to work schemes, electric car schemes, and technology purchases. Each has different rules and benefits.
Are there any downsides to salary sacrifice?
Your reduced gross salary can affect mortgage applications, life insurance premiums, and some state benefits. It may also reduce your state pension if your earnings fall below the Lower Earnings Limit.
How much can I save with salary sacrifice?
The savings depend on your tax rate. Basic rate taxpayers save 32% (20% tax + 12% NI), higher rate taxpayers save 42% (40% tax + 2% NI), and additional rate taxpayers save 47% (45% tax + 2% NI).
Can I change my salary sacrifice amount?
This depends on your employer's scheme rules. Most schemes have specific windows when you can join, leave, or change your contribution amount. Check with your HR department.
Does salary sacrifice affect my pension?
If you're sacrificing into a pension, it increases your pension pot. For other schemes, check if your employer calculates their pension contribution on your original or reduced salary.