Employee contributions to funded pension schemes surpassed the rate of employer contributions last year for the first time in the past six years.

Figures released by the Office for National Statistics showed that employees paid a total of 42.5 billion pounds in funded pension schemes as compared with 40.6 billion pounds paid in by their employers in 2008.

Recession-hit employers responded by slashing costs and contributions to the pension schemes.

Commenting on the issue, the ONS stated, "The reason for the decline in special contributions in 2008 was probably increased pressure on employers' finances in the context of the recession."

Meanwhile, employers' contribution to unfunded pension schemes jumped from 9.5 billion pounds in 2001 to 14.8 billion pounds in 2008. At the same time, workers contribution to pension schemes increased from 3.5 billion pounds to 7.5 billion pounds.

UK firms said rising pension costs robbed them of their vital funds that they need to invest in wake of recession.