The changes, which have been proposed by the Business Services Association after eight months of negotiation with government officers and the Paymaster General, mean companies could cut their salary costs by as much as 10%, according to BSA director general Norman Rose.
The BSA wants a change in the rules which force companies to provide pensions comparable to the local government scheme for transferred local government staff.
Under the Employment Rights Act 1996, contractors must offer comparable pensions.
Mr Rose said some staff could gain under this arrangement, but that companies would make a saving in most cases. Salary costs average 60% of expenditure. A reduction in company pay bills would allow them to undercut in-house bids.
'There would be a substantial saving for employers, therefore for the client - we could reduce contract prices quite considerably,' said Mr Rose.