What is pension salary sacrifice?
Salary sacrifice is an arrangement where you give up part of your gross salary and your employer pays that amount into your pension. The tax treatment can depend on the arrangement and payroll setup.
Does salary sacrifice reduce PAYE, USC and PRSI?
It can reduce PAYE in many scenarios, but USC and PRSI may behave differently. The exact outcome depends on the pension structure and payroll implementation, so treat any estimate as scenario-based.
How should I model pension scenarios for planning?
Use the calculator to compare net pay at different pension contribution rates. Focus on the change in net pay and the combined deductions rather than looking at PAYE alone.