If you become (temporarily or permanently) incapacitated for work due to an accident, you can suffer major financial damage. You work less or not at all, which causes your income to drop. We call this loss of income damage loss of earning capacity. Victims of a traffic accident or industrial accident can recover this damage from the liable party.
In this comprehensive guide we explain what loss of earning capacity in personal injury damage exactly means, how the calculation works, which factors are involved and how Arslan Advocaten helps you recover your full damages free of charge.
What is loss of earning capacity for personal injury?
Loss of earning capacity personal injury is the income difference between:
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what you could have earned without an accident, and
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what you actually earn after the accident
This damage item often arises after:
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a traffic accident (car, bicycle, scooter, motorcycle);
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an industrial accident or accident at work;
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another accident for which someone else is liable.
Because this damage can continue until your retirement age, the amounts are often significant. A correct calculation is therefore essential.
How is loss of earning capacity calculated?
Calculating loss of earning capacity for personal injury is complex. A personal injury lawyer often calls in a professional accountant. The method differs per situation.
1. Salaried employees
Employees are taken into account:
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the salary before the accident;
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the income after the accident;
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Continue payment of wages in year 1;
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30% wage reduction in year 2;
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possible termination of the contract;
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WIA benefit and disability class;
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missed pension and missed bonuses.
The difference between the original income and the lower benefit forms the basis of the damage.
2. Self-employed entrepreneurs
The damage is often even greater for self-employed people. The calculation looks at:
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turnover and profit before the accident (usually 3 years ago);
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tax returns and annual figures;
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market developments;
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growth potential and career prospects;
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Loss of orders due to the accident.
Self-employed people often miss out not only on income, but also on contracts, customers and future growth potential. This often leads to high compensation.
Which factors determine the amount of loss of earning capacity for personal injury damages?
Important factors include:
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amount of your original income;
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degree of disability (temporary or permanent);
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age and education level;
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career prospects and promotion opportunities;
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side income (such as self-employed work in addition to employment);
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pension loss and missed benefits;
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duration of recovery.
In addition, secondary employment conditions (bonuses, company car, shift allowances) can be included.
Penalties and loss of earning capacity
In addition to income damage you are often also entitled to penalties, compensation for pain, psychological complaints, frustration and loss of enjoyment of life.
Examples:
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Employee permanently disabled → career loss + compensation
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Entrepreneur must give up business → loss of income + loss of life's work
Penalties therefore come on top of the loss of earning capacity.
Other damage items in addition to loss of earning capacity
You may also be entitled to:
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medical costs
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travel costs to hospital/therapy
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domestic help
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informal care costs
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home modifications
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penalties
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statutory interest
Our lawyers will include all damages in your claim.
Practical examples
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Man unable to work after traffic accident → compensation €27,862
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Whiplash + concussion → damages €59,005 + income damage
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Slaughterhouse employee → damages €10,204 + 15 years of income damage reimbursed
Every case is tailor-made; amounts vary widely.
Free assistance from Arslan Lawyers
Recovering loss of earning capacity due to personal injury is legally and financially complex. That's why we help you completely free of charge:
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we engage specialists (arithmetician, medical advisor);
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we hold the liable party liable;
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we negotiate with the insurer;
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We ensure that you receive the maximum compensation.
We recover our costs from the liable party. Our help is therefore always free for you.
Conclusion
Loss of earning capacity, personal injury can have enormous financial consequences. Therefore, call a specialist in time. Arslan Advocaten ensures that your income damage is fully calculated and recovered, so that you can focus on your recovery.