Updated for 2026 Tax Year

Salary Pension Breakdown Calculator

Compare Employee Contribution, Salary Sacrifice, and Employer top-up to see tax impact and pension outcomes. Salary Sacrifice is highlighted as the recommended option because it can reduce both Income Tax and NI.

Saved scenarios

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Annual contract gross (£)

Contribution methods

Employee Contribution (Relief at Source)

Employee contribution (% of gross, net paid)

Tax relief is modeled at source on an 80/20 basis. Higher-rate taxpayers may claim additional relief via Self-Assessment.

Salary Sacrifice

Most Tax Efficient

Salary sacrifice pension (% of gross, pre-tax)

Salary sacrifice reduces gross salary before Income Tax and NI are calculated.

Employer Contribution (Direct Employer Top-up)

Employer contribution (% of gross package)

Auto-enrolment minimum is typically 3% employer contribution.

Results

Method comparison

Salary Sacrifice Recommended

Traditional employee contributions are treated as relief at source (80/20). Higher-rate taxpayers can claim extra relief via Self-Assessment.Employer contribution is shown as direct employer top-up (auto-enrolment minimum is typically 3%).

Per tax year (annual amounts).

Taxes Paid

Salary sacrifice saves both Income Tax and National Insurance by reducing gross salary first.

Description	Employee Contribution	Salary Sacrifice	Difference (Gain)
Gross Salary *Salary sacrifice gross is after pension reduction.	£0	£0	—
Pension Contrib. Employee is net paid; sacrifice is gross pre-tax.	£0	£0	—
Income Tax Paid Salary sacrifice lowers taxable pay first.	£0	£0	—
NI Paid Salary sacrifice lowers NI-able pay first.	£0	£0	—
Total Into Pension Includes employer top-up in both methods.	£0	£0	—
Take Home Pay Traditional take-home shown after your net employee contribution.	£0	£0	—

Pension Wealth Built

Direct Employer Top-up

£0

Minimum auto-enrolment is typically 3%.

0.00%

Your NI Savings with Salary Sacrifice

£0

Income Tax Saved with Salary Sacrifice

£0

Total deductions (Tax + NI)

£0 vs £0

Employer NIC (on top of salary)

£0

Traditional employer NIC

£0

Salary sacrifice employer NIC

£0

Employer NIC saving from salary sacrifice

£0

Net Take Home Pay

£0

Gain vs employee contribution: —

Total Pension Pot

£0

Includes employee + employer contributions.

Employer NIC shown is an estimate (2025/26 Class 1 secondary: 15% above £5,000 annual threshold).

Student loan repayments are not included. Salary sacrifice mode uses reduced gross for Income Tax and NI. Employee contribution mode models relief at source (basic-rate uplift).

Reference

Guidance & FAQ

This tool applies scenario-specific financial formulas to generate results.
Outputs are standardized into monthly and annual evidence for comparability.
Risk and tax assumptions are stress-tested for 2026 planning accuracy.

Last Updated: 16 Apr 2026

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Links & Resources

GOV.UK: Income Tax rates and allowances GOV.UK: National Insurance guidance

Important disclaimer

Content on this site is for educational and planning purposes only and does not constitute regulated financial advice. Always assess your own circumstances and seek guidance from a qualified adviser where appropriate. See the full disclaimer.

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