How different employment types affect what you pay in Statutory Neonatal Care Pay

Introduction

The implementation of Statutory Neonatal Care Pay (SNCP) introduces new requirements for UK employers. Correctly identifying how different employment types influence SNCP entitlement and calculations is vital for maintaining accurate payroll practices. This guide outlines how various job roles and employment arrangements impact SNCP, based on the latest guidance for the fiscal year 25/26.

Agency Workers and Casual Employees

Agency workers, who are treated similarly to standard employees when it comes to PAYE tax and National Insurance (NIC) contributions, may be eligible for SNCP if they meet the relevant criteria. This remains true even if the worker is not actively engaged in work, as long as they meet the qualifying conditions. Casual workers, often employed intermittently, can also qualify for SNCP if their earnings are subject to PAYE tax and Class 1 NICs, provided they fulfill the necessary requirements.

Agricultural Workers

Since the Agricultural Wages Board was dissolved in England in 2013, agricultural workers are considered eligible for statutory payments, including SNCP, as long as they meet the qualification standards.

Directors

The eligibility of company directors for SNCP depends on how and when they are paid. Directors of companies formed after October 2009 have flexibility in determining their own remuneration, while older companies follow more formal voting procedures. Regular salaries are treated as earnings for SNCP purposes, but any preemptive payments made before formal voting are excluded from calculations.

Employees with Multiple Employers or Jobs

When an employee works for more than one employer, they may receive SNCP from each, provided they qualify. For employees holding multiple roles within a single company, the way NICs are calculated influences whether they receive one or multiple SNCP payments. Combined earnings result in a single SNCP, while separate NIC calculations can lead to multiple entitlements.

Employees Working Abroad

Employees based overseas may still be eligible for SNCP if their employer continues to be liable for NICs, or would be if the employee’s earnings were sufficient. Specific provisions apply to workers within the EEA, aligning with existing UK NIC obligations.

Mariners and Irregular Employment

Mariners working on a UK-registered home-trade ship may be entitled to SNCP, assuming the employer has a UK base. Seasonal workers, supply teachers, and others in irregular employment can also qualify, especially if they are unable to work during the relevant week due to sickness or other reasons.

Conclusion

Staying informed about how various employment types affect SNCP is essential for compliance. Employers should ensure their payroll processes accurately reflect these differences to support employees during neonatal care leave.

For more information on how different employment types affect Statutory Neonatal Care Pay, visit the official HMRC guidance.