Workplace Pension Tax Relief Calculator 2026/27

The three methods: which saves most?

For most employees the ranking is: salary sacrifice > net pay arrangement = relief at source (basic rate) > relief at source (higher rate, unclaimed).

• Salary sacrifice: saves income tax AND National Insurance (8% main rate). Net cost: approximately 72% of gross contribution for a basic-rate taxpayer. No SA claim needed.
• Net pay arrangement: contribution deducted before tax, full marginal rate relief automatic. Net cost: 80% for a 20% taxpayer, 60% for a 40% taxpayer. No SA claim needed.
• Relief at source (20% taxpayer): provider claims 20% automatically. Net cost: 80% of gross. No further action needed.
• Relief at source (40%+ taxpayer): provider claims 20% only, you must claim extra 20% via Self Assessment. Full 40% relief available but requires action.

Auto-enrolment minimum contributions 2026/27

Under auto-enrolment, the minimum total contribution is 8% of qualifying earnings (between £6,240 and £50,270). At least 3% must come from your employer and at least 5% from you. Many employers offer enhanced matching above these minimums.

Always contribute enough to get the full employer match. If your employer matches up to 5% and you only put in 3%, you are leaving 2% of salary unclaimed.

Do I need to file Self Assessment for my workplace pension?

• Salary sacrifice: No SA needed for pension relief, it is automatic.
• Net pay arrangement: No SA needed, full relief is applied through payroll.
• Relief at source, basic-rate taxpayer: No SA needed, 20% is your full entitlement.
• Relief at source, higher-rate taxpayer (40%+): Yes, you must claim extra relief via SA or PAYE code adjustment. Your provider's annual statement shows the gross contribution to report.