Pension Contributions
How pensions affect your take-home pay in 2025/26
Net Pay Arrangement
Contribution deducted before income tax is calculated — automatic tax relief at your marginal rate.
Salary Sacrifice
Salary is reduced before both tax and NI — saves an additional 8%/2% on National Insurance contributions.
Pension & Your Salary
Workplace pensions in the UK typically require a minimum 5% employee contribution, with a 3% employer contribution under auto-enrolment.
Annual Allowance 2025/26
£60,000
Contributions above this may incur a tax charge.
Use the full salary calculator to model different pension contribution rates and see the impact on your take-home pay.