Why NAB is paying 169 million dollars over massive staff underpayments
National Australia Bank entered into an Enforceable Undertaking with the Fair Work Ombudsman after underpaying nearly 66,000 staff members across Australia. The bank failed to properly record working hours and apply correct pay rates between 2012 and 2026, leading to a total remediation package of $169 million. NAB is also paying a record $2 million contrition payment to resolve the regulatory action.
What happened
- 2012
Payroll errors and non-compliance issues begin affecting NAB employee entitlements [3].
- Late 2019
NAB self-reports payroll mistakes to the Fair Work Ombudsman and initiates a company-wide review [2], [3].
- 2019–2026
Underpayment issues continue while workplace inspectors review 550,000 lines of bank payroll records [2].
- Nov 2026
NAB signs an Enforceable Undertaking with the Fair Work Ombudsman, agreeing to a $169 million total settlement and a historic $2 million contrition payment [2], [3].
What you need to know
Nearly 66,000 current and former staff members across Australia were underpaid between 2012 and 2026.
The total remediation package covers $127 million in back-pay, $34 million in interest, and $8 million in superannuation.
Individual compensation ranges from under $5 to over $87,000, with an average payout around $1,934.
Unlocated former employees can claim their owed funds via the Commonwealth unclaimed monies account.
It is not yet known how many former employees NAB will be unable to trace directly. The precise schedule for external auditors to inspect NAB's upgraded payroll systems has also not been detailed.
Background
The underpayments at NAB stemmed from outdated technology, poor record-keeping, and governance shortcomings when interpreting enterprise agreements. Workplace inspectors discovered errors across base salaries for part-time workers, overtime rates, leave balances, and superannuation during parental leave.
The Fair Work Ombudsman emphasized that large institutions must adequately fund their payroll departments to comply with employment laws. The regulator accepted the $2 million contrition payment after evaluating the bank's cooperation, corrective actions, and the overall scale of the breach.
Questions people ask
How much money will affected NAB employees receive?
Individual payouts range from less than $5 to more than $87,000, with the average payment reaching roughly $1,934 including superannuation and interest.
Why is NAB paying a contrition payment?
NAB agreed to pay a record $2 million contrition payment as part of an Enforceable Undertaking to resolve legal action with the workplace watchdog.
How can former NAB staff claim unpaid money if they moved?
NAB will transfer unclaimed funds for unlocated workers to the Commonwealth unclaimed monies account, where former staff can search for owed balances.
Where this came from
[2] smh.com.au
66,000 NAB workers owed $169 million in mass underpayment
Preview image from smh.com.au
[3] news24.com.au
Almost 66,000 Aussies owed share of staggering $169m bank payout
Preview image from news24.com.au
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