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Why Salary Sacrifice Beats a Regular Pension Contribution — NI Savings, Employer Passthrough, and the £100,000 Taper

Salary sacrifice reduces gross salary before both income tax and National Insurance are calculated — unlike relief-at-source pensions which only save income tax. An employee on £40,000 sacrificing £4,000 saves £320 in NI on top of income tax relief, and their employer saves £552 in employer NI which many pass on to the employee's pension. Here's the full calculation, the personal allowance taper at £100,000, and what salary sacrifice reduces (statutory pay, mortgageable income) versus what it doesn't.