How Can I Calculate Lost Wages for a Personal Injury Claim?

How Can I Calculate Lost Wages for a Personal Injury Claim?

A personal injury doesn’t just leave you in pain—it can turn your whole life upside down. When you cannot work, and the paychecks stop coming, the stress of lost income can feel unbearable. Bills pile up, savings shrink, and the uncertainty of what comes next can be overwhelming.  

At Roy Injury Law, we understand how devastating this can be. For over 30 years, we’ve helped accident victims fight for fair compensation, including recovering the wages they’ve lost because of their injuries.  

In this post, we’ll guide you through calculating lost income for a personal injury claim. Whether you’re salaried, self-employed, or working hourly, we’ll break down what you need to know so you can focus on rebuilding your life with confidence.

Why Calculating Lost Wages is Important for Your Claim

Lost wages refer to the income you would have earned had your injury not prevented you from working. Calculating these wages accurately is vital because it ensures you are fairly compensated for your financial losses. Whether you’ve missed days, weeks, or months of work, your lost wages should be included in your personal injury claim.

More importantly, lost wages aren’t just about hourly or salaried income—they can also include bonuses, tips, commissions, and even benefits like retirement contributions. By properly calculating and documenting these losses, you can present a clear case to insurance adjusters, opposing counsel, or even a judge if necessary.

Calculating Lost Wages for Hourly Workers

For hourly workers, calculating lost wages is relatively straightforward. Begin by determining:

• Your hourly wage
• The number of hours you missed due to your injury

To calculate, multiply your hourly wage by the total number of hours missed.

Example

If you earn $20/hour and missed 40 hours of work (5 full workdays), the calculation would be:

$20 per hour × 40 hours = $800 in lost wages

Remember that if you regularly earn overtime pay, this should also be factored into your calculation.

Calculating Lost Wages for Salaried Employees

For salaried employees, the calculation requires dividing your annual salary by the total number of work hours in a year. Most full-time employees work 40 hours per week for 52 weeks, which equals 2080 hours annually.

Example

Suppose you earn $52,000 annually and miss one week of work (40 hours). Your hourly rate would be:

$52,000 ÷ 2080 hours = $25/hour

Now, multiply your hourly rate by the hours missed:

$25/hour × 40 hours = $1,000 in lost wages

This calculation ensures you’re compensated based on your salary and time away from work.

Proving Lost Wages for Your Claim

Even if your calculations are accurate, you’ll need to provide evidence to support your claim. The following documents are essential when proving lost wages:

• Wage Verification Form: This is a form completed by your employer confirming your pay rate and the hours you missed.
• Pay Stubs and Tax Returns: These provide additional proof of your regular earnings before the accident.
• Medical Records: These show your injury and justify your inability to work.
• Hospital Receipts: If your injury required hospitalization, these can further support your claim for missed work and recovery time.

Providing this documentation ensures you have a strong case for recouping your lost earnings.

Lost Wages for Self-Employed Individuals

Proving lost wages can be more challenging for self-employed individuals since you don’t have an employer-generated pay stub or tax form. However, it’s still possible to demonstrate the income you lost due to your injury.

Common documents that can help include:

• Invoices and work orders showing cancellations or missed projects
• Tax records from previous years demonstrating your average income
• Client correspondence that highlights missed opportunities

Self-employment income calculations often require more detailed evidence and, in some cases, expert testimony. For example, an accountant or financial expert may help assess the financial impact of lost opportunities or contracts due to your injury.

Loss of Earning Potential

When an injury results in temporary or permanent disability, you may also lose future earning potential—a loss that goes beyond immediate wages. “Loss of earning potential” means your ability to generate income in the future has been diminished due to the injury.

For example:

• A chef who suffers a severe hand injury may no longer perform at the same skill level and may need to take a lower-paying job.
• An office worker who develops chronic back pain after a spinal cord injury may only be able to manage part-time work going forward.

Proving loss of earning potential often involves expert witnesses, such as:

• Medical professionals who can testify to the severity and long-term implications of your injury.
• Vocational experts who assess your capacity to work in the future.
• Forensic economists who calculate the monetary difference between your pre- and post-injury earning potential.

While this process is more complex, including loss of earning potential in your claim could significantly increase the compensation you receive.

How an Attorney Can Help You Calculate Lost Wages

Calculating lost wages involves more than just math—it requires proper documentation, knowledge of the law, and a strong strategy for presenting your case. Hiring an experienced attorney not only ensures accuracy in your calculations but also provides the following benefits:

• Negotiation Experience: A lawyer can negotiate with insurance companies to secure the compensation you deserve.
• Handling Complex Evidence: Attorneys can help gather and present medical reports, pay stubs, and expert testimony in a way that strengthens your claim.
• Maximizing Your Settlement: An attorney ensures that all aspects of your financial loss—immediate wages, self-employment income, and loss of earning potential—are accounted for.

Start Seeking Fair Compensation Today

Calculating lost wages for a personal injury claim involves taking careful steps to ensure accuracy and thoroughness. Every detail matters in securing fair compensation, from hourly and salaried income to loss of earning potential.

If you’re feeling overwhelmed by this process, support is available. At Roy Injury Law, we focus on helping accident victims like you recover their lost income. Contact us today for a case evaluation, and let us take the first step toward seeking the compensation you deserve.