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Salary Sacrifice Total Reward Calculator 2024/25

See how much you save through salary sacrifice — pension, cycle to work, EV car, childcare vouchers — and calculate your total reward package value including employer NI savings.

Salary Sacrifice Total Reward Statement

2024/25 — calculates income tax and NI savings from each sacrifice element, employer NI saving, and total reward package value.

Your current annual salary before any sacrifice

Employer's pension contribution as % of your salary — used in total reward package

Annual salary sacrifice amount for pension — reduces gross for NI and income tax purposes

Legacy scheme — max £243/month for basic rate taxpayers. Closed to new entrants since Oct 2018.

Monthly sacrifice amount for bike and safety equipment

Monthly salary sacrifice for electric vehicle or company car

Any additional voluntary pension sacrifice on top of the annual pension amount above

Tax rate: 20% basic rate | Employee NI rate: 8%

Pension (annual): £2,400.00

Income tax saved£480.00Employee NI saved£192.00Employer NI saved£331.20Net cost to you£1,728.00
Total sacrifice£2,400.00
Total income tax saved£480.00
Total employee NI saved£192.00
Total employer NI saved£331.20
Net cost of sacrifice to you£1,728.00
Post-sacrifice gross pay£32,600.00

Total Reward Package

Gross salary£35,000.00Employer pension (3%)£1,050.00Employer NI saving£331.20
Total reward package value£36,381.20

5 Salary Sacrifice Planning Tips

  1. Sacrifice reduces pensionable pay: Check the impact on your defined benefit pension and on mortgage applications — lenders use contractual salary, not gross before sacrifice.
  2. EV and pension are most tax-efficient: Electric vehicles attract only 2% BIK in 2024/25, making them far cheaper through sacrifice than cash. Pension sacrifice has no BIK at all.
  3. Check your employment contract: Salary sacrifice requires a contractual change — your employer must agree and the arrangement must be documented in writing.
  4. Childcare vouchers — check your status: The scheme closed to new entrants in October 2018. If you did not join before that date, use Tax-Free Childcare at gov.uk/tax-free-childcare instead.
  5. You cannot sacrifice below National Minimum Wage: Your post-sacrifice effective hourly rate must remain at or above NMW/NLW (£11.44/hour for workers aged 21+ in 2024/25).

How Salary Sacrifice Works

Salary sacrifice reduces your contractual gross salary in exchange for a non-cash benefit. Because your gross pay is lower, you pay less income tax and National Insurance. Your employer also pays less Employer NI (13.8%) on the sacrificed amount — a saving many employers share back via enhanced pension contributions.

Which Benefits Qualify?

  • Pension — most tax-efficient; no income tax, no employee or employer NI
  • Cycle to Work — bikes and safety equipment up to £1,000 (no upper limit for some employers)
  • Electric vehicles — very low BIK (2% in 2024/25); huge saving vs petrol
  • Childcare vouchers — legacy scheme only (closed to new entrants Oct 2018)

Important Limits

You cannot sacrifice below the National Minimum or Living Wage. Salary sacrifice reduces pensionable pay which may affect DB pension calculations and mortgage affordability. Always check your employment contract allows the arrangement.