Pension Contribution Calculator 2026/27
Compare the cash outcome of net pay and salary sacrifice while keeping the same pension contribution. Pension savings stay separate from spendable cash.
Same Pension, Different Cash
Net pay£3,400.83
Salary sacrifice£3,427.83
Same salary. Same pension contribution. Two payroll arrangements.
5% employee + 3% employer on full salary. Tax year 2026/27.
Annual salary: £60,000.00.
England, Wales & Northern Ireland · Plan 2 · Net pay compared with salary sacrifice.
| Monthly average | Net pay | Salary sacrifice | Change |
|---|---|---|---|
| Reference gross salary | £5,000.00 | £5,000.00 | £0.00 |
| Employee-funded pension | £250.00 | £250.00 | £0.00 |
| Income Tax | £852.67 | £852.67 | £0.00 |
| National Insurance | £267.50 | £262.50 | -£5.00 |
| Student & postgraduate loans | £229.00 | £207.00 | -£22.00 |
| Take-home cash | £3,400.83 | £3,427.83 | +£27.00 |
Into Your Pension
Pension savings are separate from money available to spend. Employer additions are not deducted from your cash.
| Monthly average | Net pay | Salary sacrifice | Change |
|---|---|---|---|
| Employee-funded contribution | £250.00 | £250.00 | £0.00 |
| Employer addition | £150.00 | £150.00 | £0.00 |
| Total pension contribution | £400.00 | £400.00 | £0.00 |
Lower loan deductions are not necessarily a lifetime saving. This shows repayments now. Interest, balance, future earnings and write-off can change the total you eventually repay.
Calculation Assumptions & Limits
One employment, full tax year, 12 monthly pay periods, Category A NI and employment income only. Income Tax is an annual estimate; monthly figures are rounded annual averages. An individual payslip can differ. Adding rounded monthly rows can produce penny differences.
Not included: bonuses, other income, benefits, custom tax codes, relief-at-source pensions, childcare and pension tax charges. Salary sacrifice depends on an employer agreement and eligibility; this calculator does not check minimum wage or affordability.
- Relief-at-source pensions are not supported. Select the salary-sacrifice or net-pay method used by your scheme.
- Pension tax charges are not included. Other pension savings or having flexibly accessed a pension can reduce your available allowance.
- Loan deductions assume repayment through payroll all year with enough outstanding balance. Loan payoff dates and refunds are not calculated.
- Salary sacrifice requires an employer agreement. Eligibility, minimum wage and effects on benefits are not checked.
Read the full method and sources. These estimates have not received professional payroll certification.
Your comparison will appear here when the highlighted inputs are corrected.
A Worked Example, Explained
The pension contribution can be identical while the cash outcome differs.
Use a fictional £60,000 full-year salary in England, Wales or Northern Ireland, paid monthly, with a 5% employee contribution on full salary and a Plan 2 student loan. Add a 3% employer pension contribution. The example compares arrangements, not pension products. To reproduce it, choose custom percentages rather than the auto-enrolment preset.
| Annual amount | Net pay | Salary sacrifice | Change |
|---|---|---|---|
| Employee-funded pension | £3,000.00 | £3,000.00 | £0.00 |
| Employer addition | £1,800.00 | £1,800.00 | £0.00 |
| Income Tax | £10,232.00 | £10,232.00 | £0.00 |
| National Insurance | £3,210.00 | £3,150.00 | -£60.00 |
| Plan 2 repayments | £2,748.00 | £2,484.00 | -£264.00 |
| Take-home cash | £40,810.00 | £41,134.00 | +£324.00 |
Read the Two Bases
Both arrangements reduce taxable employment income by the contribution in this model. Salary sacrifice also reduces the cash earnings used for National Insurance and loan deductions. Net pay does not reduce those two earnings bases. The arithmetic here gives £324 more annual cash under sacrifice, while both pension totals are £4,800.
Lower Loan Deductions Are Not Necessarily a Lifetime Saving
The table shows what is deducted now. It does not calculate interest, future earnings, remaining balance or eventual write-off. A smaller repayment today can change later repayments, so do not treat the difference as a guaranteed reduction in the total cost of your loan.
Choose the Right Contribution Base
The custom option applies your percentages to full reference salary, as in the example above. The auto-enrolment preset instead applies 5% employee-funded and 3% employer contributions to monthly qualifying earnings between £520 and £4,189 for 2026/27. It does not assess your age, eligibility or whether you must be automatically enrolled.
The worked example starts with custom contributions. Choose the option that matches your arrangement. This is not advice to opt out. Check your scheme’s contribution base and rates: a 5% full-salary contribution is not the same amount as 5% of qualifying earnings.
Check How Tax Relief Works
The tool above compares net pay and salary sacrifice with the same contribution preset. Choose the method your employer actually uses. Auto-enrolment does not by itself tell you which method applies. Relief-at-source pensions, where a pension provider adds basic-rate tax relief, are not supported by this calculator. Do not select net pay as a substitute.
Salary sacrifice requires an employer agreement and must meet applicable earnings rules, including minimum-wage requirements. Pension tax charges, annual-allowance taper, money purchase annual allowance and other pension savings can also change the outcome. The calculator does not assess those matters or whether a contribution is suitable or affordable.
Check the Sources
- GOV.UK: how workplace pension contributions receive tax relief
- The Pensions Regulator: 2026/27 qualifying-earnings thresholds
- HMRC: salary-sacrifice rules
- GOV.UK: student-loan repayment rules
Figures checked for 2026/27. This is an independent estimate, not an HMRC service.
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