Loss of Income in Personal Injury Cases Explained

Negligence or wrongful activities not only impact one’s emotions and bodily suffering but also have ramifications in other aspects. One major impact that has been realized is the issue of loss of earnings, which is both current and future. It is important to understand this aspect, whereby representatives of the victim and witnesses take a different standpoint since it is a determinant of the damages that the involved individual may be eligible to claim.

Experts, such as attorney Felix Gonzalez, help those suffering from loss of income in many ways. They help victims receive the compensation they deserve. This includes elements like current wages as well as future anticipated advancements in the victim’s wage scale.

In this article, we will unravel the meaning of loss of income in personal injury and the manner in which it is calculated.

Loss of Income: Definition

The law refers to loss of income in personal injury cases as a financial setback an individual experiences. This financial setback is typically due to their inability to return to work and earn a living because of their injury.

Victims and their families, especially those who depend on them, can suffer severe implications from loss of income. That is true regardless of whether their absence from work is temporary or permanent.

The law recognizes two categories of loss of income and will calculate settlements accordingly:

In the Past

First, there is the loss of income in the past: the victim cannot work and earn immediately following their injury. It can include the time they had to take off for medical tests and treatments, hospitalization, and rehabilitation. Due to this time taken off, the individual may lose wages, commissions, bonuses, and other incentives they could have gotten without the injury.

In the Future

The second category is the loss of income in the future, referring to the projected earnings one could potentially lose. An accident victim can face long-term or permanent disability, depending on the nature and severity of their injury. This disability will hinder their work and ability to earn income; therefore, settlement for future loss of income will cater to this.

How to Calculate the Loss of Income

When calculating loss of income, the law considers several factors, such as the victim’s pre-injury income. It also considers how long the victim has been or will be unable to work and potential future income losses. It includes medical expenses, rehabilitation costs, and whatever will negatively impact the victim’s future employment opportunities.

Below are some of the factors considered when calculating the loss of income:

Pre-injury Income

When calculating loss of income in a personal injury case, the first thing to do is establish the plaintiff’s pre-injury income. We are talking about the wages, salary, commissions, bonuses, and other incentives they would have otherwise gotten. The appointed lawyer will need relevant documentation, including tax returns and employment contracts, to establish this.

How Long Is the Victim Absent From Work

Next on the list is how long the victim was or will be unable to work because of the injury. It includes the time they must take for medical treatments and other things needed for their recovery. They will need detailed medical reports, expert opinions, and their doctor’s statements to determine this.

Lost Wages

The calculation of loss of income takes into account the actual earnings the individual missed while absent from work. The lawyer could calculate their average weekly or monthly income and multiply it by the number of weeks or months they could not work. This calculation should be straightforward if their work earnings and schedule are consistent.

Future Income Loss and Earning Capacity

Calculating loss of income will require that experts, such as medical professionals, be sought to assess your injury’s impact on your ability to work. Also, the victim’s future earning capacity will be calculated, including their potential earnings without the injury.


Loss of income usually follows personal injuries because you will naturally need time to recover. By understanding the meaning and calculation of loss income, victims can better understand their stance and chances of getting fair compensation.

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