A new statutory entitlement to Neonatal Care Leave and Pay is to be introduced from 6 April 2025. Employed parents whose babies are admitted to neonatal care will have a day-one employment right to take up to 12 weeks off work, depending on the length of time their baby is in the neonatal unit. Eligible parents will also be entitled to up to 12 weeks of statutory pay.
Detailed guidance will follow, but this is what we know so far:
Eligibility for time off (but not necessarily paid leave) will be available to a wide range of parents including those adopting, fostering and intended parents in surrogacy arrangements. It applies to babies up to 28 days old who are admitted to neonatal care and who have a stay of 7 days or more. Claims will be between one and twelve weeks and are in addition to other maternity, paternity and shared parental leave entitlements.
To qualify for paid leave, Statutory Neonatal Care Pay, parents must meet continuity of service and minimum earnings tests. This means the eligible employee must have worked for their employer for at least 26 weeks ending with the relevant week (which, assuming the rules are the same as for maternity pay, will be the qualifying week which is the 15th week before the baby is due) and they must earn on average at least £125 per week before tax from April 2025.
The statutory pay is recoverable through PAYE, as follows:
92% if your total Class 1 National Insurance (both employee and employer contributions) is above £45,000 for the previous tax year108.5% if your total Class 1 National Insurance for the previous tax year is £45,000 or lower.
Further details including notice and information requirements can be found here.
The Neonatal Care (Leave and Pay) Act 2023 applies only to Great Britain. At the current time, no legislation to introduce Neonatal Care Leave and Pay has been introduced in Northern Ireland.
Please contact our friendly payroll team, Anne and Chloe, if you want any further information.
Comments