From 6 April 2025, parents of newborns requiring extended neonatal care will have access to Statutory Neonatal Care Leave (NCL) and Statutory Neonatal Care Pay (SNCP). These new entitlements provide eligible parents with additional time off work and, in some cases, financial support — ensuring they are not solely reliant on existing family leave entitlements such as maternity or paternity leave.
Under the Neonatal Care (Leave and Pay) Act 2023 and its supporting regulations, employees will have a day-one right to NCL if their baby is admitted to hospital for at least seven continuous days within the first 28 days after birth. Employees who meet the relevant length of service and earnings criteria may also qualify for SNCP, which will be taxable and subject to National Insurance Contributions in line with other statutory family payments.
The relevant components and custom fields have been added to process Statutory Neonatal Care Pay (SNCP) in the United Kingdom.
Custom Fields:
- Neonatal Care Start Date
- Neonatal Care Days
- Location
- Statutory pay to calculate average weekly earnings
Allowance Component:
- Statutory Neonatal Care Pay (Tax Code: SNCP)
Note Components:
- Average Weekly Earnings (Tax Code: AWE)
- SNCP NIC Compensation (Tax Code: SNCPNIC)
SNCP Recovered (Tax Code: SNCPRec)