Employers should be required to make a contribution to workers' pensions, the union Amicus-MSF said yesterday.

The union said legislation should be introduced making it mandatory for all employers to make a contribution of 5 per cent of employees' salary to a pension "as a matter of urgency".

Amicus-MSF, which represents 30,000 workers in Ireland, has prepared draft legislation that would give effect to the measure and intends to discuss the subject with political parties and other social partners over the coming weeks.

The union's regional officer, Mr Brian Gallagher, made the call following the passing of last Monday's deadline for employers to facilitate employees in starting a Personal Retirement Savings Account (PRSA).

"The State, by providing generous tax relief on employees' PRSA contributions, is playing its part in encouraging take-up. However, at present, employers are getting off scot-free and are not required to make any financial contribution," Mr Gallagher said.

If they were required to contribute, the rate of take-up on PRSAs would increase, he said.

Mr Gallagher said employers should pass back their PRSI saving of 10.75 per cent, which they receive on employees' contributions to PRSAs without having to make any contribution to the PRSA themselves. "It's akin to the Government giving them their own SSIA," Mr Gallagher said.