The Australian Industry Group says an analysis of Labor's policy to improve the retirement savings of women shows it would be ineffective and burden to businesses.

Federal Labor has proposed to remove the $450-a-month income threshold,  below which employers are not required to make super contributions.

Labor leader Bill Shorten says this will give women a fairer go when it comes to superannuation.

But Innes Willox from the Australian Industry Group said an analysis showed the policy would add much more to employer costs than it would add to the retirement incomes of women.