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13.06.2025

The Neonatal Care (Leave and Pay) Act 2023

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Southern Payroll Solutions Payroll Consultant

The Neonatal Care (Leave and Pay) Act 2023

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The Neonatal Care (Leave and Pay) Act 2023, which came into effect on April 6, 2025, provides new rights to leave and pay for parents of babies in neonatal care. Eligible employees can take up to a maximum of 12 weeks leave. This leave is in addition to other statutory parental leave entitlements. 

Key aspects of the new rights:

  • Eligibility: The leave applies to employees who are parents (including adoptive or surrogate parents) of a baby who has received or is receiving neonatal care, and their partner (if living with them). 
  • Leave duration: Eligible parents can take up to 12 weeks of leave, with one week of leave for every 7 consecutive days the baby is in neonatal care, up to the maximum of 12 weeks. 
  • Pay: Statutory Neonatal Care Pay is available, at either the statutory rate (£187.18 per week as of April 2025) or 90% of the employee's average weekly earnings, whichever is lower.
  • Employers: Employers will be able to reclaim payments made to employees on neonatal care leave through a reduction in their national insurance contributions. 
  • Minimum requirements: The new rights apply to all employees, regardless of their length of service, and do not require any minimum service requirement. 

Ensure your payroll systems and processes are fully aligned with the latest neonatal care entitlements. Southern Payroll Solutions offers expert support to help you navigate the provisions of The Neonatal Care (Leave and Pay) Act 2023. Contact us today for professional guidance and compliance assistance.

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Southern Payroll Solutions

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