Neonatal leave gives parents of babies admitted to neonatal care a statutory right to up to 12 weeks of additional paid leave. Introduced by the Neonatal Leave and Pay Act 2023, this right applies from day one of employment and provides paid leave when a baby requires hospital care in the first 28 days of life. The leave is in addition to maternity, paternity, and shared parental leave.

This guide covers eligibility, how neonatal leave works, the pay structure, and what employers need to manage.

Key takeaways

  • Parents can take up to 12 weeks of neonatal leave in addition to other parental leave.
  • Pay is £184.03 per week (2025–26) or 90% of average weekly earnings, whichever is lower.
  • The baby must be admitted to neonatal care within 28 days of birth and stay for at least 7 continuous days.
  • Neonatal leave is a day-one right — no qualifying service period required.
  • Both parents can take neonatal leave concurrently or at different times.

Who qualifies for neonatal leave

Any employee qualifies for neonatal leave — there is no qualifying service period. The right applies from day one of employment.

To qualify, the following conditions must be met:

  • The baby has been born alive (neonatal leave does not apply to stillbirths after 24 weeks — that is covered by parental bereavement leave).
  • The baby was admitted to neonatal care within 28 days of birth.
  • The baby has been in neonatal care for at least 7 continuous days.
  • The employee is the parent of the baby — including birth parents, intended parents (surrogacy), and adoptive parents.
Requirement Detail
Service period None — day-one right
Baby’s age at admission Within 28 days of birth
Minimum neonatal stay 7 continuous days
Maximum leave 12 weeks per parent
Pay £184.03/week or 90% of earnings, whichever is lower
Can be taken with other leave Yes — in addition to maternity, paternity, or shared parental leave

How neonatal leave works

Neonatal leave is taken after the baby is discharged from neonatal care. It cannot be taken while the baby is still in hospital.

The leave can be taken in two ways:

  1. Immediately after discharge — the parent takes neonatal leave as soon as the baby comes home.
  2. At a later date — the parent can postpone neonatal leave (within the statutory time limits) if they prefer to take it later.

Both parents can take neonatal leave concurrently — they do not need to take it one after the other.

Duration based on neonatal stay

The amount of neonatal leave is linked to the length of the baby’s neonatal stay:

Neonatal stay Leave entitlement
7–14 days 1 week of neonatal leave
15–20 days 2 weeks
21–27 days 3 weeks
28–34 days 4 weeks
35–41 days 5 weeks
42–48 days 6 weeks
49–55 days 7 weeks
56–62 days 8 weeks
63–69 days 9 weeks
70–76 days 10 weeks
77–83 days 11 weeks
84+ days 12 weeks (maximum)

Neonatal pay

The pay during neonatal leave is the lower of:

  • £184.03 per week (2025–26), or
  • 90% of the employee’s average weekly earnings over the eight-week qualifying period.

Most employees will receive the flat rate. The earnings test is the same as for SMP and SPP.

When neonatal leave starts

Neonatal leave starts on the day after the baby is discharged from neonatal care. The employee must give:

  • At least 28 days’ notice before the intended start date of neonatal leave.
  • Confirmation of the neonatal stay — the employer can request evidence of the baby’s admission and duration of stay.

If the employee is on maternity or paternity leave when the baby is discharged, they can choose to:

  • Continue their current leave and take neonatal leave afterwards.
  • Switch to neonatal leave immediately (curtailing their current leave).

Interaction with other leave

Neonatal leave is in addition to other parental leave. It does not reduce the employee’s entitlement to:

  • Maternity leave — 52 weeks available.
  • Paternity leave — 2 weeks available.
  • Shared parental leave — up to 50 weeks available.

The order of leave matters. Typically, neonatal leave follows maternity or paternity leave. The employee should notify you of the order they intend to take.

Employer obligations

UK employers have five core duties around neonatal leave:

  1. Grant the leave — you cannot refuse a genuine request for neonatal leave.
  2. Pay neonatal pay at the correct rate through payroll.
  3. Recover neonatal pay from HMRC at 92% (or 103% for small employers).
  4. Do not penalise the employee for taking neonatal leave — dismissal or detriment is automatically unfair.
  5. Keep records of the leave taken and pay awarded.

For more UK context, see our guides to maternity pay, paternity pay, and bereavement leave.

Frequently asked questions

How much neonatal leave can I take?

Up to 12 weeks, depending on the length of the baby’s neonatal stay. The minimum stay is 7 days, which entitles the parent to 1 week of leave.

Is neonatal leave paid?

Yes. Pay is £184.03 per week (2025–26) or 90% of average weekly earnings, whichever is lower.

Can both parents take neonatal leave at the same time?

Yes. Both parents can take neonatal leave concurrently — they do not need to take it one after the other.

Does neonatal leave reduce my maternity leave?

No. Neonatal leave is in addition to maternity, paternity, and shared parental leave. It does not reduce those entitlements.

Can I take neonatal leave if my baby was born prematurely?

Yes. The key requirement is that the baby was admitted to neonatal care within 28 days of birth and stayed for at least 7 continuous days. Premature birth does not affect eligibility.

Putting it into practice

Five steps keep your neonatal leave process correct:

  1. Include neonatal leave in your parental leave policy — explain the right and how employees should request it.
  2. Collect evidence of the neonatal stay — admission date, discharge date, and duration.
  3. Calculate neonatal leave based on the duration of the stay and apply the correct entitlement.
  4. Pay neonatal pay through payroll and recover from HMRC.
  5. Track the interaction with maternity, paternity, and shared parental leave to manage the leave order correctly.
You can take advantage of the free 14 days trial and explore Leave Balance.

A leave management system that calculates neonatal leave automatically based on the baby’s stay, manages the interaction with other parental leave, and tracks the correct pay rate keeps this new statutory right compliant and easy to administer.

Sources

Last updated: 26 July 2026. This article is general information, not legal advice. Neonatal leave is a new statutory right introduced in April 2025 — confirm current obligations with HMRC or seek legal advice.