Salary Sacrifice Calculator
Calculate your tax and NI savings for any salary sacrifice scheme — pension, cycle to work, childcare, and more.
Your Details
Total tax & NI saving
£560
Summary
Net cost to you
After all tax relief
Monthly take-home
£2,573
was £2,693
Employer NI saving
£300
per year
How much NI do you save with salary sacrifice?
The NI saving is one of the most underappreciated benefits of salary sacrifice. Unlike a personal pension contribution — which only gives you income tax relief — salary sacrifice also reduces your National Insurance contributions.
NI savings at a glance (2025/26)
8%
Employee NI rate
On earnings £12,570–£50,270
2%
Employee NI rate
On earnings above £50,270
15%
Employer NI saved
On all employer payroll
Common salary sacrifice schemes
Workplace Pension
The most popular use. You sacrifice salary into your employer pension scheme. Both you and your employer save NI. Most workplace schemes support this.
Cycle to Work
You sacrifice salary to fund a bike and safety equipment for commuting. Typical sacrifice is £500–£2,000. You save income tax and NI on the full cost of the bike.
Electric Vehicle (EV) Scheme
Increasingly popular for zero-emission cars. You sacrifice salary to cover lease payments. BIK tax on electric cars is just 3% (2025/26), making this highly tax-efficient.
Childcare Vouchers (Legacy)
Closed to new entrants in 2018, but existing members can still benefit. Replaced by Tax-Free Childcare, but sacrifice can still be used by those grandfathered in.
Frequently asked questions
What can salary sacrifice be used for?
The most common salary sacrifice schemes are: workplace pension contributions, childcare vouchers (legacy scheme, closed to new entrants), cycle to work bikes and safety equipment, electric vehicle (EV) car schemes, and ultra-low emission vehicles (ULEVs). All work on the same principle — give up salary, pay less tax and NI.
Is salary sacrifice taxable?
The sacrificed amount itself is not subject to income tax or National Insurance — that is the whole point. However, some benefits obtained through salary sacrifice (such as a company car) may have a Benefit in Kind (BiK) tax charge. Pension contributions through salary sacrifice are always tax-free.
Can I change my salary sacrifice amount?
Yes, in most cases. You can usually change your sacrifice level at certain points in the year — often annually, or following a life event (marriage, new child, change in income). The rules depend on your employer's scheme, so check with HR.
Does salary sacrifice affect statutory pay?
Yes. Because your contractual gross salary is reduced, statutory payments based on gross salary — such as Statutory Maternity Pay (SMP), Statutory Sick Pay (SSP), and state pension contributions — may be affected. Consider this before committing to a large sacrifice.