Swapping salary for a pension or perk
Swap salary into a pension and you save tax and National Insurance. For most other perks, it's less.
Your answer
Enter the amount and your salary to see the saving.
About this calculator
For employees offered salary sacrifice, and employers thinking about it.
What happens to your answers
We don’t keep them. Your answers go to our server to do the sums and aren’t stored or logged. If you copy a link to your answers, they’re in the link itself, so only share it with people you trust.
How it’s worked out
Pay swapped into a pension isn't taxed and has no National Insurance. For most other perks, the tax rules count the pay you gave up as taxable, so only National Insurance is saved. Bikes, electric cars and some childcare are exceptions.
Worked example
Swapping £5,000 of salary into your pension costs you £2,900 in take-home pay: you save £2,100.
2026/27 tax year · salary £60,000
| Salary swapped | £5,000 |
|---|---|
| Less income tax you don't pay | − £2,000 |
| Less National Insurance you don't pay | − £100 |
| Real cost to you | £2,900 |
Worked out using HMRC's published rates for the 2026/27 tax year (6 April 2026 to 5 April 2027), on a yearly basis.
Questions people ask
Is the pension saving changing?
From April 2029, the National Insurance saving on pension salary sacrifice will be limited to the first £2,000 a year.
More free calculators
Talk to us about your tax.
A free call with the team. We’ll contact you within 24 hours.