ERIC Ask ERIC
Educational modelling only. ERIC explains CMP model output from your entered settings. Not financial advice, a suitability assessment or a personal recommendation.

Salary Sacrifice Calculator

Use this calculator to illustrate how salary sacrifice works under current rules before applying any future cap.

£100,000
5%
100%

Results

Employee Reduction in Take-Home Pay
Total Pension Contribution
Pension Contribution as % of Salary
Saving Compared to Contributions out of Gross Salary

Calculation Details


            

          

        

      

    

  


  
  

    

      

        
        

          
Impact Of The Future Cap

          


              

                This calculator works out the impact of the change to salary sacrifice announced by Rachael Reeves on 26th November 2025 that are due to come into force on 6th April 2029 . 
                It compares two scenarios: Scenario A where the full salary sacrifice amount is used, and Scenario B with the new cap of £2,000 applied to the salary sacrifice amount. 
                The calculation details show the cost to both the employee and employer under each scenario, as well as the difference between them.
              


            
            

              

                
                
                
                
                £100,000
              

            

            
            
            

              

                
                
                
                
                0%
              

            


          
            
          
            
            

              

                
                
                
                
                100%
              

            


              
            
          

          
            
            

                

                  
                

                

                  
                

                

              

              
             



          
          
Calculation Results

          


              

               When the salary sacrifice cap is introduced in 2029, the financial impact will be:
              


           

            

              
Cost To Employee

            
              

            


            

              
Cost to Employer

          
              

            


          
          

        

        
        
        

          
Calculation Details

          

            

              

            

          

        

        
      

    

  

  
  
  
  

  
  
  

  
  
  
  
  

  


Illustrative comparison under the selected payroll assumptions.
Eligibility, employer rules and future legislation may change the result.
CMP is an educational modelling tool. Results show mathematical outcomes from the inputs and assumptions selected. They are not financial advice, a suitability assessment or a personal recommendation.