Statutory Neonatal Care Pay (SNCP) and Leave: A Guide for HR and Finance Professionals

Overview

Statutory Neonatal Care Pay (SNCP) and Leave are designed to support employees whose babies require neonatal care. Understanding the eligibility criteria and financial implications will help HR and finance professionals support their employees effectively during challenging times.

What Employees Can Get

Employees may be entitled to Neonatal Care Leave or both Neonatal Care Leave and Statutory Neonatal Care Pay.

Neonatal Care Leave

Neonatal Care Leave is a statutory right from an employee's first day of employment. To qualify, the employee's baby must spend at least seven consecutive days in neonatal care. For every seven days the baby remains in care, the employee is entitled to one week of leave, capped at a maximum of 12 weeks.

The leave can be taken in two formats:

• Tier One Leave: Leave taken while the baby is in neonatal care or within the first week following discharge. This leave can be taken in multiple blocks, providing flexibility for the employee to balance work and childcare responsibilities.

• Tier Two Leave: Leave taken after the baby has been discharged from neonatal care. This leave must be taken as one continuous block, typically after maternity or adoption leave has concluded.

Employees have up to 68 weeks from the child's birth to utilise Neonatal Care Leave, ensuring adequate time even when combined with other statutory parental leave.

Statutory Neonatal Care Pay

If eligible, employees may receive £187.18 per week or 90% of their average weekly earnings, whichever is lower. Payments should be processed in the same way as wages, including deductions for Income Tax and National Insurance.

Eligibility Criteria

To qualify for SNCP and Leave, employees must meet certain conditions as both a parent and an employee:

• They must be the child’s parent or partner, responsible for the child's upbringing, or an adoptive parent (including overseas adopters and prospective adopters).

• They must have been continuously employed with your organisation for at least 26 weeks before the relevant week (the week immediately preceding the start of neonatal care).

• They must continue to be employed on the day they claim SNCP and have average weekly earnings of at least £125.

Managing Leave Alongside Other Statutory Leave

If your employee is already on maternity, adoption, or other statutory parental leave when their baby requires neonatal care, they must complete that leave before starting their SNCP. Shared Parental Leave or Paternity Leave can be taken either before or after Neonatal Care Leave.

Managing Payroll and Supporting Your Employees

To facilitate SNCP, make sure employees know how to notify the organisation and what documentation may be required. Streamlining payroll processes is crucial when managing statutory payments. Using payroll software like Givver can help automate calculations, manage records, and ensure compliance, saving time and reducing errors. Provide clear guidance to employees on how to claim SNCP and Neonatal Care Leave.

For further support, you can always reach out to the Givver team for guidance, or visit the HMRC website. You can find more insights on how different employment types and employee circumstances affect Statutory Neonatal Care Pay in our articles on the Givver website: How Different Employment Types Affect What You Pay in Statutory Neonatal Care Pay and Employee Circumstances That Affect Payment of Statutory Neonatal Care Pay (SNCP).

For comprehensive information on Neonatal Care Pay and Leave, visit the official HMRC pages on Neonatal Care Pay and Leave and Employer Guidance on Neonatal Care Pay and Leave.