PayBreakdown - Salary Calculator & Budget Manager
What is salary sacrifice?
Salary sacrifice is an arrangement where part of salary is exchanged for a benefit, often pension contributions, before certain deductions are calculated.
What this page helps with
Salary sacrifice usually means giving up part of contractual salary for a benefit such as pension contributions. In salary planning, it can affect taxable pay, National Insurance, and take-home pay differently from other pension methods.
Official sources
Income Tax rates and Personal AllowancesNational Insurance rates and categoriesStudent loan repayment thresholdsPension tax reliefNational Minimum Wage and National Living Wage ratesStatutory Maternity Pay and LeaveStatutory Sick PayFCA guidance on misleading financial promotionsOff-payroll working and IR35 guidanceUnderstanding off-payroll workingSalary sacrifice for employersNHS Employers pay scales 2026/27NHS Health Careers Agenda for Change pay ratesLast updated 2026-05-07. Planning estimates only. Not financial advice.