Claim injury compensation for lost earnings, overtime & more

Can I claim for loss of earnings due to an injury?

If you were injured in an accident that wasn't your fault, you can claim compensation for lost earnings, including lost overtime, pension contributions, and other work-related losses.

This article explains what you can claim for, how to calculate your losses, and what evidence you'll need to support your claim.

What are the different types of injury compensation?

Compensation, known as 'damages' in legal terms, comes in two main types:

General damages

General damages are awarded for 'pain, suffering, and loss of amenity (PSLA),' which refers to the impact an injury or illness has had, and will continue to have, on your life.

These damages compensate for the direct effects of your injury, including:

• Physical pain and suffering
• Physical impairment and disfigurement
• Mental and emotional distress
• Loss of companionship
• Reduced quality of life

The amount awarded for general damages depends on the type and severity of your injury and how it affects your daily life.

See also:

Calculate your general damages compensation

Special damages

Special damages are awarded for any financial losses and expenses you have incurred as a result of your injury. Special damages typically include medical treatment costs, care costs, travel costs and the cost of replacing damaged property.

Additionally, you can claim compensation for any loss of earnings resulting from the injury, as well as various other work-related losses:

What work-related earnings and losses can I claim for?

Loss of past earnings

If you are employed, your net annual salary (after-tax) is typically calculated using your most recent 3-6 payslips. This amount is then annualised and adjusted pro-rata for the time you were off work.

Calculating and proving loss of earnings if you are self-employed can be more complicated if you are self-employed, as income often fluctuates.

Loss of future earnings

If your injury is severe, you may still be off work when your claim settles. Future loss of earnings is estimated based on your recovery prognosis. In cases where you can't return to work, compensation may cover lost income up to your expected retirement.

You can also claim for future loss if your injury forces you into a lower-paid job or prevents you from working entirely. Your solicitor will calculate this by determining your annual net loss and multiplying it by the years remaining until retirement, using wage slips as evidence.

Overtime

A loss of earnings claim can include loss of overtime. However, you will need to be able to demonstrate that overtime would have been available during the period of absence.

Commission

If you are partly paid on commission you should be able to include this in your claim. You will need to be able to demonstrate, perhaps from historical earnings, what your likely missed commission would have been.

Bonuses

You can also claim for any bonuses that you would otherwise have received (or likely received).

Loss of perks or benefits

If you were working towards a performance-related bonus, but were unable to see it through due to your injuries.

Compensation for loss of holiday/sick days: If you had to take these as part of your absence, you may be able to claim each day back as a day’s salary.

Loss of pension

If your injuries have necessitated a prolonged absence from work to the extent that your pension has been jeopardised.

Loss of promotion

You may have been due a promotion or had an opportunity to seek promotion. You may find that after your return to work, your ability to do your job and progress to the next level is impaired. You may have lost your confidence, and your career path is compromised as a result.

If it can be established that you might have been promoted and consequently, your earnings potential would have increased, then a case can be made for a higher level of loss of income.

How will my loss of earnings be calculated?

Your loss of earnings will be calculated based on your net pay (take-home pay) rather than your pre-tax gross salary or wages.

Your net pay will be calculated pro-rata (for the amount of unpaid time off work) as follows:

Net annual salary + Probable overtime + Bonuses + Commission + Future loss of earnings + Any other work-related losses

See also:

Is injury compensation paid tax-free?

We can calculate your injury compensation for you

Determining how much compensation you could receive can be complex. Our injury compensation calculator provides an estimate for both general damages for your injury and special damages for lost earnings and any other expenses you’ve incurred.

Find out what your injury claim could be worth now.

Will there be any deductions from my compensation?

The following would most likely be deducted from your loss of earnings calculation:

• Pension contributions (It may still be possible to claim for these losses of contributions separately).
• Sick pay (statutory or paid by your employer).
• Benefits you received whilst off work.
• Income from lighter or less physical work taken on during your injury.

How do I prove my loss of income?

If you are employed, you will need to provide evidence of your earnings for at least six months before your accident, usually using payslips. To support your claim for lost earnings, you should:

• Keep at least 6 months of payslips and any other financial records.
• Record any overtime worked before your injury.
• Track any additional payments received during the absence, such as state benefits or insurance.
• Save any correspondence about overtime, promotions, or pay increases.
• Maintain a detailed record of all days you were absent from work.
• Note down changes in duties due to ongoing injuries and their impact on current and future pay.
• If you can, ask your employer for a letter confirming the period of your absence and how much you would have earned during that time.

Proving loss of earnings if you're self-employed

Without consistent weekly earnings, quantifying your losses requires detailed record-keeping.

If you are self-employed or own a business, notify your accountant as soon as you need to take time off work. Keep detailed records of the following:

• The days you were unable to work.
• Existing contracts you could not complete due to your injuries.
• Any work you had to turn away.
• Invoices showing current earnings to compare with those before the accident.
• Details of any scheduled work, including purchase or work orders and the agreed payment rates.
• If you obtain clients on an ad-hoc basis (e.g., taxi driving), keep records of your daily earnings for an accurate loss assessment.

Ask your accountant to provide accounts for the three years preceding your accident to help calculate business losses resulting from your injury.

Read more:

Can I make a work injury claim if I am self-employed?

Proving loss of earnings if you're on a zero-hours contract

Claims can still be made against ‘quasi-employers’ for those on zero-hours contracts.

While each case is unique, successful claims are often based on occupiers' liability, health and safety breaches, or similar grounds.

Read more:

Can I claim for a work injury on a zero-hours contract?

You'll need to minimise your losses where possible

As a claimant, you have a duty to 'mitigate and minimise your losses', which means you must take reasonable steps to reduce the financial impact of your injury. This includes returning to work as soon as you are medically able or exploring a lighter or less physical role if your injury prevents you from performing your usual job.

Keep records of any efforts to find alternative work or adjust your role, as this will support your claim. Avoid unnecessary expenses during your recovery; for example, choose affordable treatment options when possible. Following these steps shows you are doing your part to limit your losses, strengthening your claim and ensuring you receive fair compensation.

Read more:

How do I 'mitigate and minimise losses' in an injury claim?.

Will I need medical evidence to support my loss of earnings claim?

Yes, medical evidence is crucial to support a loss of earnings claim. If the defendant can show that you were capable of working, you won't receive compensation for lost income.

To prove you were genuinely unable to work, you will need medical documentation. When you start a personal injury claim, your solicitor will arrange a medical assessment, and a report will be prepared to support your case.

Additionally, you should keep all medical records from the time of the injury, such as X-rays, your GP's report, test results related to your injury, and any other relevant documentation.

How long do I have to claim for loss of earnings?

In most cases, you have three years from the date of your accident to start an injury claim.

There are many exceptions to this rule, such as your age at the time of injury, when you became aware of your injury, or when your symptoms were linked to the accident. Other factors, like which solicitor you choose, can also affect the amount of time you have before some solicitors will reject your claim. Acting promptly will increase your chances of a successful claim.

Read more about the time limits for starting an injury claim.

When can I claim loss of earnings compensation?

Whether the injury happened at work, in a public place, in a road accident, or due to medical negligence, you may be eligible to claim lost earnings if you can demonstrate that it directly impacted your ability to earn an income.

For more information on the different claim types, click on the icons below:

Work accidents Road accidents Public places Medical negligence Other accidents

Make a claim for your loss of earnings with a specialist solicitor

Our expert panel of no win, no fee solicitors can handle everything for you, from gathering the necessary evidence to calculating the full compensation you deserve, including lost income, overtime, and other work-related losses.

Your solicitor will arrange medical assessments, compile reports, and negotiate directly with insurers on your behalf to secure the maximum compensation settlement.

All you need to do is provide your solicitor with key documents, such as payslips, medical records, and a record of missed work days. With our team by your side, you’re in the best hands to get the compensation you’re entitled to.

Sources:

Guidelines for the Assessment of General Damages in Personal Injury Cases, Fifteenth Edition by the Judicial College.

Author:
Howard Willis, Personal injury solicitor

About the author

Howard Willis qualified as a solicitor in 1984 and has specialised in personal injury for over 25 years. He is a member of the Association of Personal Injury Lawyers (APIL) and is a recognised Law Society Personal Injury Panel expert.