Comparison calculator page
Salary Sacrifice vs Bonus
A bonus feels cleaner on the payslip, but a salary sacrifice can sometimes produce a better net outcome once tax, NI, and pension relief are all counted together. The right answer depends on whether you need cash today or long-term efficiency.
This page is useful when your employer offers a choice between extra salary and a sacrifice arrangement, or when you are deciding whether a pay rise is better left as cash or redirected into a pension.
Option A
Take the bonus
Use the calculator cards below to model the lower-risk or simpler route when that is the better match for your horizon and cash needs.
Option B
Use salary sacrifice
Use the same numbers on the alternative route so you can compare the trade-off cleanly instead of relying on mismatched assumptions.
Use these calculators to make the comparison real
These are the CalculatorZone tools that answer the two sides of the decision most directly.
Model the bonus route
Salary After Tax Calculator
Shows the take-home figure if the pay increase stays as salary or bonus.
Use it when: Use this when you want the straightforward cash result first.
Model the sacrifice route
Salary Sacrifice Calculator
Shows what happens when the same value is moved before tax and NI are applied.
Use it when: Use this when pension or benefit efficiency may be more important than raw cash today.
Check long-term value
Pension Contribution Calculator
Helpful when the sacrifice is really a pension contribution decision in disguise.
Use it when: Use this when you want to compare current cash with future tax relief and growth.
Run the numbers side by side
Use the tools below with the same assumptions wherever possible, then compare the outputs against the decision table that follows.
Salary After Tax Calculator
Enter your figures
Fill in the inputs below and use the result as a quick planning guide before making a decision.
Salary Sacrifice Calculator
Enter your figures
Fill in the inputs below and use the result as a quick planning guide before making a decision.
How the options differ
Take-home cash
Take the bonus
Usually gives the most immediate spendable money.
Use salary sacrifice
Usually reduces current take-home in exchange for a tax-efficient benefit or contribution.
Why it matters: Cash now can be useful, but it is not always the best use of a raise.
Tax and NI efficiency
Take the bonus
A bonus is taxed and NI is charged as normal.
Use salary sacrifice
Salary sacrifice can cut both income tax and employee NI before the deduction is made.
Why it matters: The efficiency gap becomes more meaningful at higher pay bands.
Pension impact
Take the bonus
Bonus does not automatically improve retirement savings.
Use salary sacrifice
Sacrifice can boost pension funding with less net cash pain.
Why it matters: For many households the long-term pension gain is the real value in the sacrifice.
Household thresholds
Take the bonus
A bonus can push adjusted income into higher-rate or HICBC territory.
Use salary sacrifice
Sacrifice can help keep income below key thresholds.
Why it matters: Thresholds matter because one extra pound can trigger a much larger tax effect.
Decision guidance
- If cash flow is tight, compare the bonus result first and only sacrifice the amount you can afford to defer.
- If you are near £50,270 or £60,000, test the effect on higher-rate tax and Child Benefit before choosing.
- If the employer also shares NI savings, salary sacrifice can outperform a straight bonus by a wider margin.
Related pages
Official references
- Salary sacrifice and PAYE
Official guidance on how salary sacrifice affects tax and NI.
- Income Tax rates
Shows the bands used to estimate the net bonus outcome.
- Pension annual allowance
Useful if the sacrifice is really a pension contribution decision.