Salary Sacrifice Calculator
Estimate tax and NI savings from a salary sacrifice contribution.
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Salary sacrifice calculator guide for UK employees
WeCovr's salary sacrifice calculator helps UK employees estimate tax and NI savings, supported by FCA-authorised guidance and 900,000+ policies issued across protection products. It provides a simple view of take-home impact.
What this salary sacrifice calculator estimates
The calculator estimates how a monthly sacrifice affects take-home pay and annual tax and NI savings by tax band. It is a simplified model and does not replace payroll advice.
Employer rules and pension contributions may affect the real outcome.
Shows monthly take-home reduction.
Estimates tax and NI savings.
Uses simplified tax bands.
Why salary sacrifice can be effective
Salary sacrifice reduces taxable income, which can lower tax and NI, but also reduces gross pay for some calculations.
Why WeCovr supports income planning
WeCovr provides FCA-authorised guidance with high customer satisfaction ratings. We also offer complimentary access to the CalorieHero AI calorie tracking app and discounts when customers take PMI or Life insurance.
Data sources and guidance references
This guide references HMRC salary sacrifice guidance and FCA information on financial planning.
Salary sacrifice outcomes
| Band | Tax + NI saved | Take-home impact | Best for |
|---|---|---|---|
| Basic rate | Lower | Moderate | Entry-level savers |
| Higher rate | Higher | Moderate | Mid earners |
| Additional rate | Highest | Moderate | High earners |
Related WeCovr resources
FAQs
Is salary sacrifice always beneficial?
It can be, but it depends on employer rules and how reduced gross pay affects other benefits.
Does salary sacrifice reduce pension contributions?
Some employers base pension contributions on pre-sacrifice salary, but policies vary.
Is this calculator accurate for all cases?
It is a simplified model and does not include all tax nuances.
Should I speak to payroll or HR?
Yes. Employers apply salary sacrifice rules differently.