Work out salary sacrifice saving instantly with clear inputs, formula shown and shareable results.
Salary sacrifice exchanges gross pay for a benefit such as pension, so both income tax and social contributions are avoided on the sacrificed amount. That makes the net cost to take-home well below the amount contributed.
Salary sacrifice
Net cost = amount × (1 - marginal rate - contribution rate)
Tax figures are estimates based on the rates, caps and thresholds you enter. Real rules differ by jurisdiction and change every year, and personal circumstances alter the outcome. This is not tax or financial advice — confirm with a qualified adviser.
Because it also saves social contributions, which personal contributions from net pay do not.
Lower gross salary can reduce borrowing capacity, some benefit entitlements and cover based on salary.