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Introduction
National Australia Bank (NAB) will take a $130 million hit to its fiscal 2025 earnings after a payroll review uncovered widespread staff underpayments. The revelation marks the latest in a series of high-profile wage compliance breaches across corporate Australia.
Details of the Announcement
In a statement on Monday, NAB said its **operating expenses** for the first quarter of the 2025 financial year will now rise **4.5 per cent higher** than the previous year due to remediation costs.
NAB spokeswoman **Sarah White** apologised to staff, describing accurate pay as an “absolute priority.”
“We are sorry and apologise to our colleagues that this has happened and have commenced remediating those impacted,” she said.
Background and Costs
The bank has been grappling with payroll compliance for several years. A **2019 payroll review** has already cost NAB more than **$250 million**, with the latest disclosure pushing total remediation costs significantly higher.
The latest $130 million charge reflects both backpay and additional compliance measures being rolled out across the bank’s workforce.
Industry Commentary
Payroll compliance experts say NAB’s case illustrates the broader systemic challenges in Australia’s workplace laws.
**Max Moran**, CEO of payroll compliance firm Subi, said:
“$130 million is a big number but the real story is thousands of workers who weren’t paid correctly. The lesson from NAB is clear: manual payroll checks can’t keep up with Award complexity. Without automation and regular audits, businesses will continue to miss obligations.”
Broader Context
NAB’s admission follows a string of similar revelations by major employers across sectors, highlighting the complexity of Australia’s workplace awards system and the risks for companies that fail to implement rigorous compliance checks. For staff, the fallout underscores the importance of transparency and robust protections in ensuring wages are correctly delivered.
Conclusion
As NAB works to restore trust with employees and regulators, the $130 million earnings hit underscores the financial and reputational cost of payroll failures. For corporate Australia, the case serves as another reminder that workplace compliance is not optional—and that breaches will carry steep consequences.