![[Australia] NAB admits $130 million impact of ‘payroll issues’](http://gpa.net/cdn/shop/articles/bigstock-National-Australia-Bank-NAB-lo-63329092_4fc6df46-46fe-4136-93c3-4fa3dcc14f84_1200x.jpg?v=1756072869)
National Australia Bank (NAB) has announced a $130 million financial hit - including underpaying wages and entitlements - and acknowledged that payroll problems run deeper than first thought, ABC News reports.
The bank was warned that its operating expenses for the financial year 2025 are now forecast to rise 4.5 per cent from the previous year, due to the cost of reviewing and remediating "payroll issues".
The news comes five years after NAB first commenced a payroll review, which led to it repaying millions to underpaid staff. In an ASX release, NAB said its "payroll review and remediation is ongoing, and the total costs remain uncertain".
NAB chief executive Andrew Irvine reportedly said the costs of rectifying and remediating payroll issues were "disappointing" and the issue "must be fixed".
Sarah White - NAB’s people and culture executive - said, "Paying our colleagues correctly is an absolute priority."
"We are sorry and apologise to our colleagues that this has happened and have commenced remediating those impacted."
In 2019, the bank launched a payroll review, which cost it $250 million between FY2020 and FY2022. Problems were identified with its payroll system at that time.
Finance Sector Union (FSU) reportedly expressed disbelief that "one of the nation's biggest banks has once again failed to pay its workers correctly".
FSU national president Wendy Streets called the scale of underpayment "nothing short of systemic wage theft", particularly as Australians struggle through the worst cost-of-living crisis in decades.
"NAB has been forced to make provisions of nearly $400 million to pay back its workforce over the last five years - money that should never have been taken from workers in the first place”, she said.
FSU demanded that NAB issue an immediate apology and explain how this was allowed to happen.
The bank reportedly said it had engaged the Fair Work Ombudsman and the FSU and was keeping its employees informed, including contacting those directly affected.
NAB has yet to disclose how many staff have been affected. However, the payroll review covers its Australia-based colleagues and Australian colleagues working overseas.
Source: ABC News
(Quotes via original reporting)
National Australia Bank (NAB) has announced a $130 million financial hit - including underpaying wages and entitlements - and acknowledged that payroll problems run deeper than first thought, ABC News reports.
The bank was warned that its operating expenses for the financial year 2025 are now forecast to rise 4.5 per cent from the previous year, due to the cost of reviewing and remediating "payroll issues".
The news comes five years after NAB first commenced a payroll review, which led to it repaying millions to underpaid staff. In an ASX release, NAB said its "payroll review and remediation is ongoing, and the total costs remain uncertain".
NAB chief executive Andrew Irvine reportedly said the costs of rectifying and remediating payroll issues were "disappointing" and the issue "must be fixed".
Sarah White - NAB’s people and culture executive - said, "Paying our colleagues correctly is an absolute priority."
"We are sorry and apologise to our colleagues that this has happened and have commenced remediating those impacted."
In 2019, the bank launched a payroll review, which cost it $250 million between FY2020 and FY2022. Problems were identified with its payroll system at that time.
Finance Sector Union (FSU) reportedly expressed disbelief that "one of the nation's biggest banks has once again failed to pay its workers correctly".
FSU national president Wendy Streets called the scale of underpayment "nothing short of systemic wage theft", particularly as Australians struggle through the worst cost-of-living crisis in decades.
"NAB has been forced to make provisions of nearly $400 million to pay back its workforce over the last five years - money that should never have been taken from workers in the first place”, she said.
FSU demanded that NAB issue an immediate apology and explain how this was allowed to happen.
The bank reportedly said it had engaged the Fair Work Ombudsman and the FSU and was keeping its employees informed, including contacting those directly affected.
NAB has yet to disclose how many staff have been affected. However, the payroll review covers its Australia-based colleagues and Australian colleagues working overseas.
Source: ABC News
(Quotes via original reporting)
