Pension deduction comparison calculator (2026/27)
Compare how salary sacrifice and a net-pay pension arrangement affect estimated take-home pay.
Enter your figures
2026/27 estimate for England, Wales or Northern Ireland. Check the scope and assumptions below.
- Annual gross pension contribution
- £1,750.00
- Annual Income Tax
- £4,136.00
- Annual employee NI
- £1,654.40
- Income Tax saving vs no contribution
- £350.00
- Employee NI saving
- £140.00
- Estimated annual take-home
- £27,459.60
- Monthly take-home equivalent
- £2,288.30
What this estimate includes
England, Wales or Northern Ireland employment income; standard tax code 1257L; contributions entered as a percentage of total gross salary; no student loan or other income. This is not a qualifying-earnings auto-enrolment calculation or a relief-at-source comparison.
Method and assumptions
Both illustrated methods reduce income used for Income Tax. Salary sacrifice also reduces earnings used for employee NI; a net-pay contribution does not. Employer contributions, scheme charges and employer NI sharing are excluded. The tool assumes the contribution qualifies for the illustrated relief; annual allowances, relevant earnings limits and minimum-wage protections need separate checks.
Read the related explanation and check the next steps.
Sources and review
AfterTaxUK Editorial Team · reviewed 22 October 2026. A review date is separate from live deployment. Check your own records and current official guidance for individual decisions.
Frequently Asked Questions
Clear answers based on official HMRC rules and statutory guidance.
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Visit Blog HubChoose the pension method first
Salary sacrifice reduces contractual cash pay; net-pay contributions normally reduce Income Tax but not employee NI or student-loan pay. Relief at source adds basic-rate relief through the provider.
A percentage of full gross pay is not automatically the same as auto-enrolment qualifying earnings. The pension tool compares its supported methods; the general salary widget models salary sacrifice only. Tax relief is not an investment return.
Check the rules for your circumstances
Official guidance supports the rules described here; it does not approve or certify this calculator. Confirm dates, eligibility and unsupported cases before making a financial decision.