Salary Sacrifice NI Savings Calculator
Employee NI is 8% on most of the band, employer NI 15% above £5,000. For £2,000 sacrificed: employee saves £160, employer saves £300 — total £460. Some employers pass their NI saving into your pension.
Quickly estimate the National Insurance you and your employer save by sacrificing salary in the 2026/27 tax year.
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What this calculator does
Computes employee and employer NI before and after sacrifice, plus the potential extra employer pension contribution if employer NI is shared.
Who it is for
UK employees and employers exploring an NI-efficient salary sacrifice arrangement.
How to use it
Enter gross salary, annual sacrifice and employer NI sharing % (0, 50 or 100).
How the calculation works
Employee NI: 8% £12,570–£50,270, then 2%. Employer NI: 15% above £5,000. Computed before and after sacrifice; differences are the savings.
Worked example
£40k salary, £2,000 sacrifice: employee NI saves £160, employer NI saves £300; if employer passes 100% back, pension contribution rises to £2,300.
Assumptions and limitations
- 2026/27 only
- NI only — Income Tax shown elsewhere
- Future April 2029 employer NI change on sacrificed pension > £2,000/year is NOT applied here
- Estimates only
Frequently asked questions
Why does the employer save NI?
Sacrifice reduces gross pay, which is the base for employer Class 1 NI (15% above £5,000 from April 2026).
Will my employer pass NI back?
Some pass 0%, 50% or 100% into the pension — ask your HR/payroll team.
Does this include Income Tax?
No — NI only. Use the take-home or hub calculator for Income Tax.
Secondary threshold?
The £5,000/year level above which employers pay Class 1 NI from April 2026.
Above the upper earnings limit?
Employee NI is 8% up to £50,270 then 2% — calculator handles the split.
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Sources and references
GOV.UK NI rates and thresholds 2026-2027; GOV.UK Salary sacrifice for employers; GOV.UK changes to salary sacrifice for pensions from April 2029.
Last updated
Last reviewed: 2026-05-21.