On February 24, 2025, the Department for Business and Trade introduced the Neonatal Care Leave and Pay Regulations 2025. These regulations will come into effect on April 6, 2025, and bring important changes for employed parents and updates that you need to be aware of.
Under the new rules, Assumed Pensionable Pay (APP) must be applied to any employed parents who take Neonatal Care Leave (NCL) for babies born after April 5, 2025. This means that during paid NCL, pension contributions should continue as if the employee were still earning their regular salary.
However, it's important to note that APP does not apply to unpaid NCL leave, just like the existing rules for parental and adoption leave.
Please ensure that your payroll systems and processes are updated to comply with these new regulations. This will help in providing the necessary support to your employees during their neonatal care leave.