Example
Salary sacrifice on £30,000
A worked example showing why a £30,000 salary sacrifice decision needs to be judged on net pay change, not gross sacrifice alone.
Scenario
Assume a UK employee on £30,000 is considering sacrificing £2,000 into pension.
What usually happens
The annual take-home pay drop is smaller than £2,000 because income tax and employee NI on that slice are reduced.
What to look at
Focus on the effective net cost of the extra pension contribution and whether monthly affordability still feels comfortable.