Employers and business chiefs are concerned that forcing companies to pay more for staff pensions will affect employment levels.
Under the new National Pension Saving Scheme (NPSS), employers are required to contribute to their employees' pensions.
The Pensions Commission is adamant that compulsory contribution is necessary for the pension reform.
Jeannie Drake, a member of the commission, said: "Good employer contributions must continue to form an integral part of good employer provision."
However, small businesses who are already struggling under the burden of regulation will find this particularly hard to cope with.
David Frost, director general of the British Chambers of Commerce, told the Herald that small firms would be particularly badly hit and that businesses were continually warning that they would have to reduce salaries and lay off staff.
The deputy director general of the Confederation of British Industry, John Cridland, agrees, saying: "The Pensions Commission admits compulsion would have a harsh impact on business but claims there is no viable alternative. This is wrong."