Salary sacrifice. What your pension really costs.
A salary sacrifice contribution leaves your pay before tax and NI are calculated — so £100 into your pension costs you far less than £100 of take-home. At Scottish rates the effect is even stronger for Higher-band earners. Enter your numbers.
| Goes into your pension / year | |
| Take-home without pension | |
| Take-home with pension | |
| Real cost to you / year | |
| Every £100 saved costs you |
Why the discount is bigger in Scotland
Sacrificed salary escapes income tax at your marginal band plus National Insurance. A rUK basic-rate payer saves 28p per £1 (20% + 8%). A Scot in the Intermediate band saves 29p; in the Higher band 50p (42% + 8%); above £50,270, 44p (42% + 2%); in the Advanced band 47p; and inside the £100k–£125,140 taper zone, an extraordinary 69.5p — every £1 sacrificed there costs just 30.5p of take-home. Salary sacrifice also isn't available from every employer, and lowering your gross can affect mortgage applications and some benefits — worth checking before committing.