Automatic enrolment will become the most expensive regulatory change imposed on businesses under the coalition government.
Government data reveals the shake-up to workplace pensions, which will bring up to 10m people into savings for the first time, will cost businesses £2.8bn by 2050.
A report into the progress of the coalition's ‘one-in, one-out' rule on regulation said the bulk of the £3.2bn savings businesses received from the switch from CPI to RPI pension indexation had "now been offset" by auto-enrolment.
It stated the reform is "the largest regulatory measure to date" since the coalition came to power in June 2010.
Minister of state for business and enterprise Mark Prisk said savings for businesses from all government cuts to regulation have outweighed costs by over £850m.
He said: "As expected, the bulk of the regulatory savings delivered through private pensions' indexation has now been offset by pensions automatic-enrolment.
"Taken individually, these may seem like small steps, but together they are making a real difference. It is our aim to continue to cut the costs to business of regulatory burdens to boost consumer and business confidence."
Under the government's ‘one-in, one-out rule' each piece of regulation must be offset by a cutback elsewhere.
Despite the impact of auto-enrolment, the government said DWP regulatory changes will still save businesses £680m.
Joined as head of strategy, multi asset, in June
Group income protection
Nine in 10 do not have income protection
Set to become part of Single Financial Guidance Body