UK pension salary-sacrifice marginal scenario
Compare a pension addition with the reduction in take-home pay for a sacrifice wholly within the marginal rates you enter.
Your inputs
Start with the example values, then replace them with your own. For tables, keep the vertical bar separators and use a dot for decimals.
Illustrative inputs are not certified current rates or an entitlement decision. Confirm the country, year, eligibility and contract. This limited model is not a tax return, payroll service or financial/legal advice. Do not act on it without verifying the applicable rules.
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Result and workspace
Use the start button to open your result or activity.
How it works
Cash given up = sacrifice × (1 − tax rate − employee NI rate). Add the employer NI saving share to the pension amount. Crossing tax bands, minimum wage, statutory pay, pension limits and future policy changes are not modeled; split the amount into valid marginal slices or obtain payroll confirmation.
Worked example
These sample results use the original example inputs in the form. They do not change when you edit your inputs; your own result appears in the workspace.
- Cash pay given up after marginal savings: 2160
- Employee tax and NI saving: 840
- Employer saving shared: 225
- Pension addition: 3225
Read the result carefully
Results depend on the values and assumptions shown above. Change one input at a time to see its effect. A blank or unavailable result means the data does not support a calculation; it is not zero.