Unpaid leave — rights and consequences (2026)

The legal basis — Art. 160 LC

Article 160 LC is the small valve in Bulgarian labor law — for when the employee needs time off and paid annual leave is exhausted or unavailable. The conditions are simple:

• A request from the employee (written or oral, but written is advisable for proof);
• The employer's consent;
• A period and duration agreed between the parties.

The Code sets no upper cap — in theory you can agree on anywhere from one day to several years. In practice 1–6 months is most common.

The 30-day threshold — what changes

The most important threshold in unpaid leave is 30 working days in a calendar year. Art. 160(3) LC is explicit: up to 30 days — service counts; beyond — it does not.

Impact on salary

During unpaid leave the employee receives no salary. The salary for the month is calculated pro rata to working days actually worked:

Example: 10 days unpaid in March

Special unpaid leave

Childcare up to age 8 (Art. 167a LC)

After the paid leave up to age 2 expires, parents are entitled to up to 5 months of unpaid leave per parent for caring for a child up to 8. The leave can be taken by the mother, the father (or grandparents with consent). Service counts under a special rule — the 30-day cap of Art. 160 does not apply.

Care for a relative (Art. 167b LC)

5 working days per year for personal care to a seriously ill parent, spouse, adult child or other family member.

For study and qualification

Under Art. 169 LC — study leave (paid and unpaid) for workers attending secondary or higher education.

Other

Unpaid leave for participation in elections, for a wedding, on death of a close relative — usually governed by the CLA or internal rules.

Impact on service and benefits

Unpaid leave beyond 30 days a year has real consequences for future cash benefits. Plan accordingly:

• Sick pay: the base is the 24-month average daily insurance income. Months in unpaid leave beyond 30 days are not included — the result is a lower benefit.
• Maternity: same principle — the 24-month base shrinks, the benefit drops. Also: maternity requires 12 months of insurance length — long unpaid leave beyond 30 days does not count.
• Pension: pension insurance length does not accrue beyond the 30-day threshold.
• Paid annual leave: reduced pro rata for unpaid days.
• Health insurance: without contributions (over 30 days) — health rights are interrupted. To restore, you must pay the missed contributions yourself.

Protection and reinstatement

During unpaid leave the employment contract is preserved and the employer cannot simply terminate it on grounds that did not exist before the leave. Art. 333 LC protection continues to apply in its general form. After return, the employer is obliged to reinstate you on the same or an equivalent position.

A contentious situation: if after requesting unpaid leave the employer refuses to approve it. That is a lawful refusal — the employee has no absolute right to unpaid leave (with the exception of the special cases). On refusal the employee can:

• Negotiate a period that suits both;
• Use paid annual leave (if available);
• Ultimately — terminate the contract under Art. 326 LC (with notice).

Frequently asked questions