NAB to Pay $169 Million Following Massive Staff Underpayment

National Australia Bank (NAB) has formally conceded it underpaid 66,000 of its workers $127 million over a 14-year period, leading to a total repayment obligation of $169 million including interest and superannuation. As of November 12, 2026, the bank is working to rectify these payroll failures which impacted staff across the country.

Why it is trending now

The trend follows the bank's formal admission of long-standing payroll failures, which were first reported to the federal regulator in 2019 but were not fully resolved until this year. The scale of the error—requiring an inspection of 550,000 lines of payroll data—has drawn significant public attention to the bank's internal processes.

Key facts

• NAB will provide a record $2 million “contrition payment” to the Fair Work Ombudsman, according to reports from the Sydney Morning Herald.
• The underpayments stemmed from failures to track staff hours, apply correct penalty rates, and meet minimum industry pay standards.
• Fair Work Ombudsman Anna Booth stated that companies must prioritize accurate pay to show respect to their workforce.
• While some individuals are owed over $87,000, the average payment to affected staff is approximately $2,000.

Why this is trending in Australia

The news is trending in Australia as it involves one of the nation's major financial institutions and affects tens of thousands of local employees, highlighting broader concerns regarding corporate wage compliance.

Background and context

The payroll issues first came to light in 2019 when NAB reported the discrepancies to the Fair Work Ombudsman. Despite this initial disclosure, the problems continued for another seven years. The investigation required extensive work by Fair Work inspectors to verify the extent of the underpayments across the bank's various employment contracts.

What happens next

NAB is expected to complete the repayment process for the affected workers. The $2 million contrition payment serves to settle the legal side of the issue with the Fair Work Ombudsman, though the bank faces ongoing scrutiny regarding its internal payroll management systems.