Calculate your combined 41% savings from salary sacrifice: 20% tax + 12% NI + 9% student loan. See exactly how much you save annually with pension, cycle to work, and other schemes.
Total annual savings: £740 (37.0% effective relief)
Net cost of sacrifice: £1,260 for £2,000 benefit
Your £2,000 salary sacrifice only costs you £1,260 out-of-pocket due to combined tax, NI, and student loan relief.
Salary sacrifice reduces gross income, saving 20% tax + 12% NI + 9% student loan for basic-rate taxpayers.
Monthly: £3,333
Most valuable due to employer match
Monthly: £167
Typical: 3-5% of salary (free money!)
Net Pay Difference:
-£1,260 less take-home but you gained £2,000 in benefits + £2,000 employer match!
You pay £1,260, get £4,000 pension!
Employer Match Amplifies Value:
Your £1,260 net cost builds £4,000 pension value — that is a 217.5% instant return before any investment growth!
Pension contributions first:
Always prioritize pension up to employer match — it is free money plus 41% tax relief. A 5.0% contribution matched 5.0% gives 239% instant return.
Stack multiple schemes:
Combine pension + cycle to work + childcare vouchers for maximum annual savings. Each scheme provides the same 41% relief.
Review annually:
Schemes like cycle to work are annual — use them every year for ongoing tax-free benefits. Your £740 annual saving compounds over decades.
Salary sacrifice with student loans provides extraordinary value — 41% combined relief means every £100 sacrifice only costs you £59. Start saving today.