Neonatal care leave – What employers need to know before April 2025

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A new statutory entitlement is arriving in April 2025 – neonatal care leave and pay.

Introduced under the Neonatal Care (Leave and Pay) Act 2023, this measure is designed to support parents whose newborns require specialist care after birth.

It also means employers will need to make some changes to payroll systems.

What is neonatal care leave?

Neonatal care leave gives eligible employees up to twelve weeks off if their baby is admitted to neonatal care within the first twenty-eight days of life, and stays in hospital for seven consecutive days or more.

Importantly, this is a day-one right, it applies from the moment someone starts their job and is in addition to maternity, paternity, or shared parental leave.

This entitlement is UK-wide, applying across England, Wales, Scotland, and Northern Ireland.

How does neonatal care pay work?

While leave is available from the outset, statutory neonatal care pay has its own qualifying criteria.

Employees will need to have worked for their employer for a set minimum period (details to be confirmed) and must earn at least £125 per week.

For the 2025/26 tax year, the weekly rate of neonatal care pay will be £187.18 or 90 per cent of the employee’s average weekly earnings, whichever is lower.

Employers will need to ensure their payroll systems are equipped to apply the correct pay rates and assess eligibility accurately.

What should employers do to prepare?

It is estimated that around 60,000 parents a year will make use of neonatal care leave, so preparation is key to ensuring minimal disruption.

Employers should start by reviewing their payroll systems to ensure they can process the new pay entitlement correctly.

Communicating these changes to employees is important, as is planning ahead for potential staffing gaps, as employees could take up to twelve additional weeks’ leave.

For expert advice on making sure your payroll processes reflect these changes, contact us today.