A pension contribution can reduce take-home pay by less than the amount going into your pension. The difference depends on how your scheme gives tax relief.
Checked . Based on official GOV.UK guidance. About our calculators and content.
Calculate your pension deduction
Net pay
Net-pay contributions come off before Income Tax is calculated. In this calculator, they reduce taxable pay but not NI pay. Check whether your scheme applies the percentage to full salary or qualifying earnings.
Salary sacrifice and relief at source
With pension salary sacrifice, you give up cash salary for an employer contribution. With relief at source, the provider adds basic-rate tax relief and you may need to claim more. The calculator’s net-pay option does not work out relief-at-source payroll.
Compare the two methods
The pension tool compares the same gross contribution through net pay and salary sacrifice. It does not forecast investment growth, retirement income or annual-allowance charges, and it cannot confirm which arrangements your employer offers.
Source: Read the original rules and guidance. Content checked 23 October 2026. General explanation, not personalised tax advice.