Written by Rick Gregory, Editorial Lead · Legal information checked in collaboration with Edward & Amaury Solicitors (SRA 800525) · September 2026 · ~4 min read
Quick Summary
- Loss of earnings forms part of special damages, separate from general damages for the injury itself, and can cover both past and future lost income
- Past loss of earnings covers your net pay lost from the date of the accident to settlement, evidenced by payslips and employment records
- Future loss of earnings applies where your injury affects your ability to work going forward, and is often the largest single element in serious injury claims
- The calculation is based on your net (after-tax) earnings, not your gross salary, since that's what you actually lost
What counts as loss of earnings?
Loss of earnings is part of the special damages element of your claim — the part that reimburses actual financial losses, as distinct from general damages, which compensate for the injury itself. It covers income you've genuinely lost because your injury prevented you from working, whether that's a few days off or a longer-term effect on your ability to earn.
Past loss of earnings
This covers your net earnings — after tax and National Insurance — lost between the date of the accident and the date your claim settles or goes to trial. If you received Statutory Sick Pay or contractual sick pay during this period, that's factored into the calculation, since you're claiming the genuine shortfall rather than double-recovering pay you already received.
Evidence for past loss of earnings typically includes:
- Payslips from before and after the accident
- A letter from your employer confirming your normal earnings and any pay you received while off
- Evidence of any bonuses, overtime, or other regular income affected
Future loss of earnings
Where your injury has a lasting effect on your ability to work — reduced hours, a change of role, or an inability to return to your previous job at all — future loss of earnings can form a substantial part of your claim. This is calculated by projecting your likely lost income going forward, taking into account your age, your remaining likely working life, your career trajectory, and the medical prognosis for your injury.
For serious injuries, this calculation often involves expert evidence — sometimes from a forensic accountant — to properly project long-term financial impact, particularly where your earning capacity (rather than a specific job) has been affected.
What if I'm self-employed?
Loss of earnings claims for self-employed workers use a broadly similar principle but rely on different evidence — typically accounts, tax returns, and invoices showing your trading history and income pattern, since there are no payslips to rely on. This can make the calculation more involved, but it doesn't prevent a genuine claim.
What if I was on a zero-hours contract or had irregular income?
Your solicitor can use your recent working pattern — payslips, rota records, or an average based on a representative period — to establish a fair calculation, even without fixed, predictable hours.
What if I lost a promotion or a specific opportunity because of my injury?
Genuine, evidenced loss of a specific opportunity — a promotion you were reasonably likely to receive, or a role you had to turn down — can potentially be claimed, though this requires clearer evidence than a general assumption about career progression.
Can I claim for loss of pension contributions?
Yes, in principle — where your injury affects your earnings, any resulting reduction in pension contributions your employer would otherwise have made can also form part of your claim, particularly in longer-term or future loss scenarios.
Frequently asked questions
Do I need to have already lost income to claim, or can I claim for anticipated future loss?
Both. Past loss of earnings covers income already lost; future loss of earnings covers a genuine, evidenced ongoing or anticipated impact on your ability to work, assessed with medical and, where needed, financial expert evidence.
Is loss of earnings taxed as part of my compensation?
No — like the rest of your compensation, loss of earnings recovered as part of a personal injury claim is not subject to income tax, even though the earnings themselves would have been taxed had you earned them normally. See our guide on tax and compensation for the fuller picture.
What if I'm not sure how much I've actually lost?
Your solicitor will help gather the evidence needed and calculate this properly — you don't need to work out the figure yourself before getting in touch.
Want to understand what you could recover?
A free case assessment can give you an honest view of your specific financial losses.
Or call 01228 272395 to speak to Edward & Amaury Solicitors (SRA number: 800525). No upfront cost and nothing to pay if your claim does not succeed.