Salary Sacrifice Calculator - GRL Group Personal Pension Plan (April 2016)

Defined Contribution

The salary sacrifice calculator can be used to assess the total savings available to you if you decide to join one or more of the institute’s salary sacrifice schemes. Salary sacrifice is a contractual arrangement where you exchange part of your salary in return for a non-cash benefit. Information about all our benefits is available.

  • Contributory (non-salary sacrifice) – you contribute a minimum of 3% of your salary to the scheme before tax is deducted but National Insurance Contributions (NIC) is payable. You can increase the amount of your contributions to a % of your choice (so long as your salary does not fall below the national minimum wage; the calculator will alert you if you select % that will cause this to happen).
  • Contributory (salary sacrifice) – Through salary sacrifice your gross salary is reduced by an amount equal to your pension contribution [minimum 3%] and Genome Research Limited pays your contribution instead. As a consequence, you save the NICS on this amount as well as the tax. You will automatically be put into this scheme unless you choose to opt out of the pension salary sacrifice.
  • Employer contributes a minimum of 5% of salary to your pension.
  • An additional 10% of pensionable salary is available to the employee which can be taken either as an additional contribution to your pension or as a cash (non-pensionable) supplement to your monthly salary. Non-pensionable supplements will be subject to tax and NI deductions at your normal rate.
  • Combinations of the 10% additional allowance are allowed e.g. 5.5% can be taken as a non-pensionable supplement to monthly pay and the remaining 4.5% allocated to the employer pension contribution, making a total of 9.5% employer pension contribution. Only combinations of increments of 0.5% will be allowed.

Other salary sacrifice schemes

Childcare Vouchers:

The scheme enables employees with children at an ofsted registered childcare facility to sacrifice part of their salary to receive childcare vouchers – saving tax and NIC on the value of the voucher. Basic rate tax payers are capped at £243 per month, higher rate tax payers are capped at £124 per month.

Workplace Nursery:

Enables you to save tax and NIC on your nursery fees when using the onsite Genome Campus Crocus Early Years Nursery.


Enables you to save tax and NIC on up to 2 bikes and safety equipment to the value of £2000 (per employee) and repay over a one or two year period.


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  1. The calculations are for illustrative purposes only and any figures produced cannot be taken as a guarantee by the Institute to deliver such savings identified and they are in no way intended to be a recommendation for a particular course of action or constitute advice.
  2. In particular, you need to be aware that the total level of financial benefit may be affected by personal circumstances such as different tax codes, different pension arrangements and entitlement to benefits or tax credits. The figures used for these calculations are set at the default personal tax allowance and NIC thresholds set out by the government each year.
  3. You cannot reduce your salary to below minimum wage. The calculator will alert you if this happens.
  4. If you have selected Contributory (non-salary sacrifice) as your GRL Group Personal Pension Plan option then you will only make savings on tax and not NICs. This is not a salary sacrifice arrangement but the government allows you to receive tax relief on the amount of your pension contribution.