Could My Personal Injury Claim Compensate Me For Loss Of Earnings? – A Guide How To Claim Loss Of Earnings

    Loss Of Earnings Compensation Claims Explained

    By Mark Anderson. Last Updated 16th March 2021. Welcome to our guide, which covers how to make a loss of earnings claim. You might be aware that if you’re involved in an accident caused by somebody else’s negligence, you could be entitled to claim compensation for your suffering and out of pocket expenses. However, did you know that if your injuries affect your ability to work, even for short periods of time, you could be entitled to include loss of earnings in your claim?

    In this guide, we look at how to claim compensation for loss of earnings, when it could be possible, and how much could be claimed back in a successful case against the responsible party. We’ll review accidents at work, road traffic accident and what evidence is required to prove your losses.

    Loss of earnings claim

    Calculating loss of earnings compensation

    Legal Helpline assists anybody who’s considering any form of personal injury claim. We do this by offering free legal advice on how to go about claiming compensation together with a no-obligation assessment of your claim. Once we establish sufficient evidence to support your claim, we would connect you with one of our panel of personal injury solicitors. If they take your case forwards, it’ll be on a No Win No Fee basis.

    If you would like to discuss your claim today, please call our friendly team of advisers on 0161 696 9685.

    Alternatively, if you’d like more information on when it’s possible to claim for loss of earnings, please continue reading.

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    A Guide To Claiming Compensation For Loss Of Earnings After An Accident

    Several different life incidents could lead to you losing out financially because you don’t receive your normal salary. Incidents like workplace accidents, road traffic accidents, and you could even suffer a loss of earnings due to coronavirus (Covid-19).

    This guide looks at the different scenarios where you could claim compensation for loss of earnings. In many compensation claims, the two most common elements of the loss of earnings claim are the injury itself and lost income. Proving the exact level of both is essential to ensure you receive the right compensation level in a successful personal injury claim.

    Throughout this guide, we review why you might incur a loss of income and how you may be able to claim it back. We look at how to calculate your lost earnings, whether you could claim for future lost earnings, and how somebody who’s self-employed may be entitled to claim lost earnings.

    One thing you should bear in mind is that there’s a personal injury claims time limit in the UK. Under normal conditions, this is a 3-year time period from the date an accident occurred. This means you should begin your claim as soon as possible. Although 3-years sounds long enough, there are a few steps that your solicitor will need to take. If time is limited, it could mean they cannot collect all of the evidence to support a claim fully.

    When you’ve completed our guide, if you believe you could be eligible to claim lost earnings, please contact our team. They’ll assess your claim and provide free advice on your options.

    What Is Loss Of Earnings Compensation?

    The definition of loss of earnings is when you’re involved in some accident or incident which causes you to take time off from work, and as a result, you lose some or all of your income for a defined period of time. Loss of earnings can be claimed for short periods of time taken off work or when your injuries affect your ability to work in the future.

    Should this be the case, the amount paid in loss of earnings compensation could cover all potential earnings as detailed below:

    • Whether you’re unable to work at all
    • A percentage of your earnings if the injury you suffered reduces the number of hours you can work
    • The type of work you can undertake

    You could also include any pension losses in your claim if the scheme’s contributions are reduced due to the injuries you sustained in an accident at work. The Health and Safety Executive (HSE) notes that, in 2018/19, around £4.94 billion was lost due to injuries at work. And there was a further loss of £10.4 billion in worker income due to ill health stemming from work environments.

    How Are Loss Of Earnings Calculated?

    You may be asking, “could my personal injury claim compensate me for loss of earnings?”
    Calculating how much income you’ve lost can be a tricky process. In normal circumstances, one way of calculating how much has been lost is to take 3 payslips from the months before your accident and to work out your net monthly wage. This figure should be multiplied by the time you were absent from work to provide a lost income amount. And you can then build a loss of earnings claim around this.

    However, if you’ve received Statutory Sick Pay (SSP), the amount you received would be deducted from the amount of lost earnings compensation you are awarded in a successful personal injury claim. It is also worth noting that if you could’ve been offered over time in the period you were absent from work, you may be entitled to include this in your claim. To prove that overtime was available, you’d need some form of evidence (such as emails from your employer) and previous wage slips to demonstrate that over time had been available in previous months.

    As you can see, there are many things to consider when trying to ensure the correct figure is used to claim loss of earnings compensation. Our panel of solicitors specialise in these types of calculations and so could help you with yours.

    How Is My Net Monthly Income Calculated?

    When asking for compensation for loss of earnings, you must only claim what you would have actually lost. A net monthly income is the amount of salary you would normally have paid into your bank each month and not your gross salary.

    For instance, if your gross monthly salary is £3,000 per month, the amount could be reduced to say £2,200 after deducting pension contributions, tax deductions, national insurance and staff incentives. Therefore, your net monthly income used for loss earnings compensation purposes would be £2,200. This is the actual amount of money you would lose if you had to take a whole month off work due to the injuries you sustained.

    Calculating Lost Pension Contributions

    Your pension can be a highly valuable asset when you retire from work. If you fail to contribute to the scheme, the size of your pension pot may be reduced, and therefore, the amount of return upon retiring could also be less. Due to the compound nature of pension contributions, even a few missed payments could have a large impact on the pension you’ll receive.

    Therefore, in personal injury claims where you’ve taken time off work and not contributed to your pension during that time, you could be entitled to make a loss of earnings claim. For more information, please speak to one of our advisers today.

    Calculating Loss Of Future Earnings Or Income

    Loss of future earnings can be a large part of any compensation claim, especially where injuries are so severe that a claimant cannot work again.

    To calculate the amount of compensation payable, the length of time that the claimant is off work would be calculated first. If they can’t ever return to work, their age would be deducted from their retirement age to work this out. Otherwise, the return to work date will be based on the medical evidence provided by a solicitor.

    The number of years would be multiplied by your net annual income to work out a loss of future earnings compensation. However, it’s not as simple as that. There are several factors to consider. These include:

    • Whether the claimant might’ve had a chance of being promoted in the future
    • If their injuries were sustained before their career could be established
    • Whether the claimant could perform other work but for a lesser salary

    If a solicitor from our panel takes on your claim, they’ll sit down and work out the potential amount you may be able to claim. It’s important to get this figure right as, potentially, it could be your main income source until retirement age is reached.

    How To Calculate The Loss Of Self-Employed Income

    When you’re self-employed, the chances are that your income is never the same from month to month. To help prove how much income you’ve lost, you could provide:

    • Copies of orders that you were unable to fulfil
    • Contracts that weren’t completed
    • A profit and loss account from your accountant for at least a 3-year period before the accident

    You are still entitled to claim for loss of earnings when you’re self-employed but proving a net monthly income can be trickier. If you’d like further advice on doing so, please contact our team of specialist advisers today. Remember, the advice they offer is free, and you’re under don’t have to proceed to make a loss of earnings claim unless you’re happy to do so.

    Calculating Loss Of Sick Pay, Benefits And Overtime Pay

    If your employment contract allows for several sick days or days off for holiday purposes and you’ve had to use them while recovering from your injuries, you could be entitled to claim them back in compensation.

    Also, if you work in a role where incentives are paid for achieving certain targets, but you missed out because you weren’t able to work, it could be possible to claim these back too.

    Previous incentive payments could be used as evidence to support this type of claim, and your contract could be provided as evidence of your entitlement to holiday pay.

    How Do I Prove What Earnings Or Income I Have Lost?

    To prove your loss of earnings, there are several steps you’ll need to take. These include:

    • Writing a loss of earnings letter providing details of the schedule of loss linked to the claim.
    • Providing evidence of at least six months of previous earnings. This could be in the form of wage slips. For the self-employed, verified business accounts could be used.
    • Proof of previous overtime should be provided if claiming for this. Again, this could come from detailed wage slips or emails from your employer.
    • If claiming for pensions losses, a statement from your pension provider could be provided to show the impact on its value caused by missed contributions.

    There are many more methods that could be used to help prove lost income. When we’ve assessed your loss of earnings claim, if further evidence is required, we’ll let you know.

    Personal Injury Calculator – What Is My Injury Claim Worth?

    Claiming loss of earnings is different for every claimant. Several different factors could affect how much you may be entitled to claim. The personal injury claims compensation table below shows some of the factors used to help calculate how much compensation you may be awarded in a successful claim.

    Claim TypeCompensation AmountDetails
    Loss of earningsAt least £500.00 per month calculated for the number of months off work There are a number of factors considered when calculating loss of earnings. These include:

    - The initial number of days off work.
    - Difference between normal salary and statutory sick pay.
    - The age of the claimant.
    - The salary of the claimant.
    - Their job prospects.
    - The amount of specialism in their role.
    - The expected date of return to work (if medical evidence suggests this will be possible).

    There are two parts to a loss of earnings claim, initial financial losses and compensation for future lost income. It’s important that your solicitor can demonstrate exactly how your injuries are likely to affect you in the long-term when claiming for future losses. Therefore, our panel of solicitors uses independent doctors to assess you. They’ll look at how you’ve suffered when the accident happened but also at how any long-term injuries might affect your ability to work. The report they write can then be used to ensure you receive the right level of compensation for your loss of earnings claim.

    Additional Costs Or Losses You May Claim Compensation For

    When you claim compensation for any form of injury caused by negligence, several things can be included. We have covered loss of earnings, but there are several different elements too. These are:

    • General Damages
      This is compensation that’s paid to cover the pain and suffering caused by your injuries. Loss of amenity is also considered too.
    • Travelling Costs
      If you’ve incurred fuel cost or parking costs when attending doctor’s appointments or hospital treatment, you could claim these losses back. Also, should your injuries mean you’re unable to drive while recovering, you could claim alternative travel arrangements too
    • Care Costs
      In cases where you require support while you’re recovering, you could claim back the cost of a professional carer. If you were looked after by a family member, their time could be compensated for as well.
    • Medical Costs
      You will usually receive free treatment from the NHS to aid your recovery. However, you could still incur costs for prescriptions and other medicines. Therefore, these could be claimed back.
    • Personal Property Damage
      Finally, if any item of personal property is damaged during your claim, then the cost of repairing or replacing it could be included.

    The parts of the claim associated with financial losses are known as special damages. These are paid as compensation rather than a fine and are intended to ensure you’re not left in a worse financial position than you were before your accident.

    To make claims for special damages, we advise that you retain any receipts that help prove your spending. Also, it can be a good idea to keep a diary during your claim so that you can explain why each cost was incurred and how it linked to your injury.

    No Win No Fee Loss Of Earnings Compensation Claims

    One thing that worries some people when they’re considering making a loss of earnings claim is the cost of hiring a legal team to represent them. You don’t need to worry about that, though, if you use Legal Helpline because our panel of solicitors work exclusively on a No Win No Fee basis for any claim they take on.

    Because of the No Win No Fee option, the solicitor will have to assess your claim to ensure there’s a chance of winning compensation. If they believe there is, you’ll be given a Conditional Fee Agreement (CFA) to sign. This legal contract is really important because it shows you no solicitor’s fees to pay unless compensation is awarded. Also, it explains what success fee you’ll need to pay when you do receive compensation.

    Success fees are used to cover the solicitor’s work. They’re shown as a percentage of your compensation. When the claim is settled, rather than you having to send money to pay the solicitor, the success fee is deducted from the amount you are awarded.

    We feel that No Win No Fee services enables more people to claim compensation for a loss of earnings as it reduces the financial risks involved. If you’d like to check with us whether you’re eligible to make a No Win No Fee claim, please call today.

    How Legal Helpline Could Help You Claim Compensation For Lost Income

    So, now you’ve read our guide about claiming compensation for loss of earnings, why should you let us help you make your claim? Well, here are some reasons:

    • Our advisers provide free legal advice and a no-obligation assessment of your claim.
    • We have a claims line that’s open all day, every day, so you can begin whenever it suits you.
    • Our panel of solicitors has up to 30 years of experience in handling compensation claims. They always work on a No Win No Fee basis for claims they take on.
    • Your solicitor will keep you updated as your case advances. They’ll also ensure they don’t cause any hold-ups that delay your claim.
    • Finally, our panel of solicitors always aims to ensure you receive as much compensation as possible.

    If you have any further queries about how Legal Helpline could help you claim, please get in touch. There’s no pressure, and you’re under no obligation to continue to a claim.

    Start Your Loss Of Earnings Claim

    We hope that you’re now ready to begin your loss of earnings claim. We also hope that you’d like Legal Helpline to help you make it. If so, we can be contacted in several different ways, including:

    • Call and speak with a member of our team on 0161 696 9685
    • Please arrange for a free call back at a convenient time by completing our online enquiry form.
    • Or, if you prefer, you can chat live with an adviser from any page on this website.

    You can begin your claim 24-hours a day, 7-days a week. When you discuss your personal injury claim with an adviser, they’ll offer free advice about your options after your no-obligation consultation. If the adviser feels your case can be won, they could introduce you to a personal injury lawyer on our panel. If they agree to work on your behalf, they’ll do so on a No Win No Fee basis. Please feel free to contact us to discuss your claim today.

    Further Information

    Thanks for taking the time to read out guide about claiming for the loss of earnings. We hope that it’s made clearer and you understand what can be claimed for. To provide further assistance, we’ve included some more of our guides and some external links below.

    Accident At Work Claims – Further information on claiming loss of earnings due to an injury at work.

    Road Traffic Accident Claims – Information on what a personal injury solicitor can claim for following an RTA, including loss of income.

    Supermarket Accident Claims – A guide about personal injury claims for injuries suffered within a supermarket.

    Statutory Sick Pay – This government website explains when you could claim SSP and how much you’ll get.

    Jury Service – Information on when you need to take time off work for jury service and your rights when doing so.

    Coronavirus Covid-19 – Information from the NHS on Coronavirus and the latest stay at-home advice.

    Loss Of Earnings Claim FAQs

    What does a loss of earnings mean?

    A loss of earnings is where a worker loses out on their income. It is generally the result of an injury, and the situation maximises if the injury happens at work. All of which explains why you could include loss of earnings as part of a claim.

    Could I claim for loss of earnings?

    Yes, you can. A claim isn’t solely based on loss of earnings, with a lack of income forming part of the overall claim. But you could certainly claim for any money that you’ve lost out on by being unable to work.

    So, how do I prove loss of income?

    It’s important to note that income loss only refers to income from the past rather than future opportunities. This allows you to produce wage slips that indicate what you normally make and what you could have made on the dates that you’ve missed out.

    And how do I prove my loss of income if I’m self-employed?

    Again, this is about demonstrating what you normally earn and could have expected to earn only for being hurt. And this should cover the period from when you were hurt to when you made a full recovery. This, of course, alters if you end up suffering an injury that proves to be career-ending.

    Article by BH

    Editor HW

    Thank you for reading our guide, which explains how to make a loss of earnings claim.