Bank to incur approximately $130 million in FY25 to address payroll issues
The National Australia Bank (NAB) disclosed on Monday it had underpaid employees and expects to incur approximately $130 million in costs in FY25 to address the issues.
In an ASX announcement, NAB revealed it has launched a broader review into payroll-related benefits under both current and certain historical agreements.
This follows payroll issues identified during ongoing reviews and investments, as well as work undertaken to transition to a new Enterprise Agreement in 2024.
"NAB's payroll review and remediation is ongoing and total costs remain uncertain," the bank said in the announcement.
However, it noted that it already expects its FY25 operating expenses to be approximately 4.5% higher than FY24.
"This includes costs associated with a program to identify, rectify, and remediate payroll issues currently estimated at $130 million in FY25, which is disappointing and must be fixed," said NAB CEO Andrew Irvine in a statement.
The bank said a dedicated team has been established to investigate and resolve the issues, as well as ensure future sustained compliance.
"Paying our colleagues correctly is an absolute priority," said Sarah White, NAB Group Executive People and Culture, in a statement.
NAB has engaged with the Fair Work Ombudsman and the Finance Sector Union. It is also keeping employees informed, including contacting those directly affected.
"We are sorry and apologise to our colleagues...
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