A leading union called on the Government yesterday to introduce minimum pension contributions for both employers and staff.

Amicus said firms should be forced to pay ten per cent of a worker's salary into a pension, while staff should contribute five per cent in a bid to ease retirement poverty.

It also called on the Government to match the compulsory contributions made by low-paid employees at the rate of 40p for every £1.

The union argued the cost of doing this should be weighed against the substantial reduction in the number of pensioners who would be reliant on state benefits.

Speaking at the union's pensions conference, Amicus leader Derek Simpson said: "The argument for the minimum pension is clear.

There should be a commitment by employees but employers must be compelled to make minimum contributions to their employee's pensions regardless of structure.

"Compelling minimum contributions of ten per cent by employers and five per cent by employees, linked to a long-term funding standard, will allow for greater stability and predictability of costs for employers and greater security of benefits for employees."

Amicus said it expected resistance from employers, just as businesses had been against the minimum wage, but compulsory contributions would have no impact on competitiveness or jobs because they would be introduced across the board.

It also called on the Government to set up a pension scheme backed by government bonds for employers who could not afford to run their own schemes.

Roger Lyons, joint general secretary, said: "Every British worker is under threat from a pensions catastrophe which will result in poverty for hundreds of thousands of people who think they are going to be able to retire in comfort.

"This is a national crisis and Amicus is mobilising its membership to be vigilant in every workplace in the country."