Calculating Personal Injury Loss Of Earnings Settlements

Welcome to our guide on calculating a personal injury loss of earnings settlement. Many things can change suddenly after an accident caused by a breach of duty of care. As the shock of a physical injury subsides, and you begin to receive the treatment you need, other problems may start to emerge.

personal injury loss of earnings

Personal injury loss of earnings claims guide

One of these repercussions from an accident could be a loss of earnings. The drop in income can create many unwanted issues. In this article, we look at what practical steps you can take to get this lost money back.

Get in touch with our team if you were injured because someone who had a duty of care towards you breached this duty, and you were injured as a result. You can get in touch with our team by:

  • Calling our team for instant guidance and advice on 020 3870 4868
  • Filling out our contact form
  • Use the ‘live support’ option for help right now

Alternatively, you can read on for more information on claiming loss of earnings.

Services And Information

  1. Everything You Need To Know About Personal Injury Loss Of Earnings Claims
  2. What Are Loss Of Earnings Calculators?
  3. General Damages And Special Damages
  4. How You Calculate Personal Injury Loss Of Earnings Settlements
  5. Calculate Your Lost Income
  6. How Do I Calculate My Personal Injury Settlement Amount?
  7. The Ogden Rate Calculated
  8. Other Work-Related Financial Losses
  9. What Proof Of Lost Income And Benefits Do I Need?
  10. What Proof Of Income Can Zero Hours And Self Employed Workers Use?
  11. Steps To Take Immediately After An Accident
  12. Claim For Personal Injury Loss Of Earnings On A No Win No Fee Basis
  13. Related Compensation Calculators
  14. FAQs About Personal Injury Loss Of Earnings Claims

Everything You Need To Know About Personal Injury Loss Of Earnings Claims

In this guide, we will look at the process of claiming loss of earnings as part of a personal injury claim. We will start by looking at loss of earning calculators, what they are and how they can help. To claim loss of earnings after an injury caused by a breach in the duty of care you would need to make a successful personal injury claim or medical negligence claim.

Furthermore, we will look at the two different heads of claim and what you could receive as part of your compensation settlement. We will look at the distinction between general and special damages and how each of them is calculated. In addition to this, we will look at Ogden tables and how they can be used to calculate loss of earnings.

In addition to the loss of earnings, there are also other kinds of financial losses that you could incur as a result of not being able to work. We will cover what these are and how they could be included in a claim.

You may have suffered a loss of earnings after being injured in an accident but be on a zero-hours contract or self-employed. You may wonder how this could affect the loss of earnings compensation you could be owed; we will look at this in more detail later on in this guide.

Finally, we will look at the steps you should take after being injured in an accident caused by someone else’s negligence. We’ll also examine No Win No Fee agreements and the benefit that using one of these agreements can have.

If you have any further questions about making a loss of earnings claim, give our team a call for free legal advice. Otherwise, read on to find out more.

What Are Loss Of Earnings Calculators?

When you are involved in an accident that occurs because of the negligence of someone who owed you a duty of care, you may be able to make a personal injury compensation claim. As part of this claim, you could receive compensation for any loss of earnings you have experienced.

Online you may be able to find calculators that work out how much loss of earnings you could be entitled to in a successful personal injury claim. They may do this by adding up how many days you were off sick from work multiplied by the amount you are paid.

The part of your compensation that covers any financial impact caused by your injuries is known as special damages. You’ll need to provide evidence as to the loss you have experienced.

You’ll also usually be asked to demonstrate that you were justified in staying off work for the length of time you did. You might need to provide medical evidence to show this. Furthermore, in order to make a loss of earnings request as part of your personal injury claim, you will need to show that you did not take any more time off than necessary while you recovered.

If you would like one of our advisors to assess how much loss of earnings you could claim back, why not give us a call today? A member of our team can take all the details from you and offer a free, no-obligation valuation of your case.

General Damages And Special Damages

Special damages are the part of your potential personal injury compensation claim that compensates you for the financial impact that your injuries have had on you. Not every claim will include special damages, as not all injuries will lead to a financial impact. You will also find it difficult to claim back special damages if you don’t provide evidence of your special damages.

Things that can be covered by special damages include:

  • Care costs
  • The cost of adaptation to your home or vehicle
  • Transport costs to and from medical appointments
  • Loss of earnings
  • Loss of future earning potential
  • Impact on pension
  • Loss of attendance bonus

Although special damages are worked out based on evidence provided, you cannot be awarded special damages without also being awarded general damages.

General damages are the part of your claim that compensates you for the pain and suffering that your injury has caused you. The amount you receive in general damages will depend on the severity of your injury. It will also take into consideration how long it is likely to affect you.

In order to work how much you could be owed in general damages, you will usually be invited to a medical assessment with an independent expert. The report from this assessment will be used with the help of guidelines from the Judicial College to help value your claim.

How You Calculate Personal Injury Loss Of Earnings Settlements

Personal injury loss of earnings can be calculated based on net pay (take-home pay) as opposed to your gross or pre-tax wages. It is calculated pro-rata based on the amount of time taken off work.

Personal injury loss of earnings claims can also incorporate a loss of overtime. You must be able to demonstrate that overtime is a normal part of how you work. Also, you must be able to prove that overtime would have been on offer and available to you through the period you were off.

Commission is a part of many people’s income, and you may rely upon it. Obviously, if you were unable to work, you were unable to reach targets or achieve the desired threshold of income to qualify for commission. Once again, you must be able to demonstrate that this is a normal and anticipated part of your income and that the injuries have deprived you of your ability to access it.

Staff or work bonuses can also be claimed. This may require a confirmation from your employer that you were due to receive one. With evidence that you lost out on your bonus, the amount can be validated by your employer and incorporated in your request for damages by your lawyers.

If you would like more information on how much you could be entitled to in your personal injury claim, get in touch with our team today. One of our advisors could take the details of your case and offer you a no-obligation valuation of your claim.

Calculate Your Lost Income

Below, we have included a table showing how the loss of earnings part of your claim could be worked out. Please be aware that this is just an example. The amount of loss of earnings compensation you receive will depend on how much you earn and how long you were off work.

Month Net Wages/Per pay slipNet annual income based on average wageNet daily wage based on 5-day weekNumber of absent daysNet loss (of income)
April£1,700£20,600£85.8015 days£1,287 (15 days absence at £85.80 per day)
May£1,650
June£1,800
Average monthly wage£1,716

How Do I Calculate My Personal Injury Settlement Amount?

When you make a claim for compensation, the general damages head of your claim will compensate you for the pain and suffering caused by your injuries. We have included the below table to illustrate how much you could be owed.

The figures from this table come from guidelines produced by the Judicial College. This is a publication that lists a number of different compensation brackets for a range of different injuries of varying severities. The amounts that are included in this table below are guidelines only. You are not guaranteed these amounts in your claim.

Type of injurySeveritySuggested award bracketnotes
Brain damageVery severe£264,650 to £379,100life-altering condition where the injured person may retain some ability to follow basic commands but will express little or no meaningful response to their environment
Brain damageLess severe£14,380 to £40,410Good recovery with an ability to return to a normal social life and workplace.
EyeTotal loss of one eye£51,460 to £61,690Awards within this bracket will depend on how severely the cosmetic effect and psychiatric consequences of this injury.
Chest injuries(c)£29,380 to £51,460Damage to chest and lungs causing some ongoing disability.
NeckSevereIn the region of
£139,210
Injuries associated with paraplegia that is incomplete and little or no movement in the neck
Back injurySevere (i) £85,470 to £151,070Damage to spinal cord, severe disability
ArmPermanent residual disability£36,770 to £56,180For example, serious fractures to one or both arms. The disability within this bracket can be functional or cosmetic

For an accurate valuation of your claim with no obligation to use our service, speak to our team today. Our advisors can offer free legal advice and an assessment of your claim.

The Ogden Rate Calculated

The Ogden tables are produced by the Government Actuary’s Department. They’re used to help work out lump sum compensation awards in cases of personal injury and fatal accidents.

It includes a list of multipliers. These are then applied to the value that a future loss has in the present day.

There are a number of tables included. The first two of these tables cover life expectancy for men and women. These can be used to work out lifelong losses. Tables 3 to 14 cover loss of earnings up to a variety of different retirement ages, and tables 15 to 26 cover the loss of pension from a range of retirement ages. Table 27 can be used to discount for a time in the future, and table 28 can be used to work out a recurring loss over time.

When you’re using the table, you need to choose the table that relates to the circumstances. For instance, you will choose a table depending on your gender and the relevant period of loss or expense. You will then come to the appropriate multiplier, which you can apply to the present-day cost.

Other Work-Related Financial Losses

As well as a straightforward loss of earnings, there are some other work-related financial losses that you could experience as a result of being injured. For example:

  • Pension contributions. If you’re off work for a long enough time, then this impact on your earnings could have an effect on your pension contributions.
  • Sick days used. You may have taken some time off work to recover and used sick days to do so. If so, you could claim back these days as part of your compensation. You will be compensated a day’s salary for every sick day you have taken.
  • Perks & benefits not accrued. Some workplaces offer performance-related bonuses or may offer a monetary incentive for not taking any time off work. If you were unable to work towards this because you were injured, then you could claim this back.
  • Not being promoted. If you can demonstrate that you could have been promoted if you had not taken time off work, then this could be used to justify seeking a higher compensation award.

You may have experienced a work-related financial loss that we have not mentioned above. If so, don’t worry; just give our team a call today and provide us with the details of your claim. one of our advisors could help you value your claim.

What Proof Of Lost Income And Benefits Do I Need?

It’s important to retain paper evidence of anything that can substantiate your claim for special damages. This includes a loss of earnings. For example, you could provide payslips that show your earnings were reduced. You may also present doctors notes to show that you had to take time off work.

As well as loss of earnings, you can also claim other things as part of special damages. This can include things like care costs, the cost of home or vehicle adaptations and travel costs to and from medical appointments. You will need to provide evidence of these, too. This might include things like bills and receipts to show what you have paid.

Speak with our advisors now. See how legal help could benefit your personal injury loss of earnings claim.

What Proof Of Income Can Zero Hours And Self Employed Workers Use?

A zero-hours contract or ‘casual contract’ is a kind of employment contract where you’re not guaranteed a certain number of hours. In fact, the employer does not need to offer you hours at all.

Self-employment is where you work for yourself, and therefore it is up to you what hours you work from week to week. Furthermore, the nature of some kinds of self-employed job roles might mean that your working hours vary, making it difficult to ascertain what loss of earnings you have experienced.

If you’re on a zero-hour contract, then the courts will usually look at your payslip in the weeks leading up to your injury. This will show the loss of earnings you have experienced. However, you may be able to argue that these are not representative of the earnings that you would have made if you were working.

For instance, you may be a server in a restaurant. Imagine you are injured at the beginning of December. You could argue that your previous few weeks of earnings are not representative of what you would have earned in the busy Christmas period.

If you’re self-employed, you may want to collect evidence of any work that you weren’t able to undertake because of your injuries. You could also show invoices that illustrate the amount of money you usually earn.

Steps To Take Immediately After An Accident

Immediately after being injured in an accident, the first thing you should do is seek medical attention. This is because if you delay being treated for your injuries, this could lead to your condition getting worse. Furthermore, medical reports from seeking medical attention could be used to support your claim.

You should also collect evidence that the accident was caused by negligence. For example, you may find it useful to take photographs of the thing that caused the accident. You could also include a report if a record was made in an accident book. You could also collect the details of any witnesses who saw the accident take place. They may be able to provide statements down the line.

Anyone can start a claim for personal injury, and you can do so without legal representation. But we recommend working with a specialist personal injury solicitor. They have the expertise to understand any issues that might arise. Read on to find out how a No Win No Fee agreement could help you fund legal representation.

Claim For Personal Injury Loss Of Earnings On A No Win No Fee Basis

A No Win No Fee agreement is a contract between you and your solicitor that sets out what they need to do before receiving payment. Under this kind of agreement, you will not be asked to pay anything to your solicitor upfront or while the claim is ongoing.

There are also no fees due at all to your solicitor if the case fails. If your case is successful, you only pay a small percentage, a ‘success fee’, which is deducted from your settlement. Success fees are capped by law. This ensures that the bulk of your compensation always goes directly to you.

When you reach out to our advisors, they can quickly assess your claim’s eligibility. In addition to this, they connect you with a lawyer from our panel who has the expertise to help. You can:

  • Call our team for instant guidance and advice on 020 3870 4868
  • Write to us using our contact form
  • Use the ‘live support’ option for help right now

Related Compensation Calculators

Below, we have included some additional guides that you may find useful:

Fatal accident claims 

Claiming as an agency worker

What are my rights after an accident at work? 

When should I visit A&E? An NHS guide 

The Royal Society for the Prevention of Accidents

Statutory Sick Pay information from the government

FAQs About Personal Injury Loss Of Earnings Claims

Please feel free to get in touch if there are any points you want answers on.

What injuries could I claim for?

You can claim for a wide number of different injuries and ongoing conditions. In order to claim, you need to show that it was caused by the negligence of someone who owed you a duty of care.

What accidents could happen in the workplace?

Slips, trips and falls are common causes of injuries in the workplace. You could also experience a manual handling injury, perhaps because you did not receive proper training.

Can I claim if I was at fault?

Sometimes, you and the party who owed you a duty of care may have both been partially at fault for the accident. If this is the case, you may still be awarded a settlement, but your compensation could be reduced accordingly.

How do I get more money from my claim?

A specialist solicitor could help you get more money from your claim. In addition to this, you should have evidence of the injuries you have sustained and the financial harm you have experienced.

Thank you for reading our guide on claiming a personal injury loss of earnings settlement. We hope that you have found it useful.

Writer FE

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