Work out what a pension salary sacrifice scheme saves the agency and its staff.
Illustrative figures on 2026/27 rates and simplified assumptions. This is general information, not advice. Ask us to work it out on your agency's figures, free.
The employee gives up part of their salary and the employer pays the same amount into their pension. No income tax or National Insurance is due on it. It needs a written contract variation, made before the pay is earned.
The figures are the calculator’s starting point for one of the eight employees.
Only the first £2,000 sacrificed a year keeps the National Insurance exemption. Above that, employer and employee National Insurance apply as if it were salary. Income tax relief is unchanged.
The employer saving is 15% of the amount sacrificed, but only where you pay employer National Insurance on that pay. The allowance covers the first £10,500 of the bill, so a small payroll can save nothing. The employee saving is the larger of the two.
The National Minimum Wage applies to the pay left after the sacrifice. A negotiator on a low basic can drop below it in a slow month. Set the sacrifice as a percentage of pay, or against basic only.
Branch managers, valuers and the administration and accounts staff on stable salaries. Model them first and treat negotiators separately.
Auto-enrolment still applies, and the sacrificed amount counts toward the minimum contribution. Set the payroll software up before the first run.
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Lists the pension, ISA, inheritance tax and salary sacrifice changes already in law and when each takes effect.
Read the guideWorks out whether your pensions will cover the retirement income you want, and by how much they fall short.
Open the calculatorA free review gets you the accurate figure for your agency.