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How To Calculate Lost Wages in a Personal Injury Claim

Posted on August 4, 2025 Personal Injury

If you’ve been injured in a car accident or other incident in Seattle, Washington, and have had to miss work, you may be able to recover your lost income through a personal injury claim. These damages are often a major part of the financial recovery available after a serious injury. However, to get adequately compensated, you’ll need to know how to calculate them as well as how to prove the amount you’re owed.

What Are Lost Wages?

“Lost wages” refer to the money you would have earned if the accident hadn’t happened. This can include not only the regular income you missed while recovering, but also other work-related losses like tips, commissions, bonuses, and even sick leave or vacation time you were forced to use.

In some cases, you may also be able to seek damages for a reduced ability to earn income in the future. This is called lost earning capacity and is typically reserved for more severe injuries that affect your long-term employment.

What You’ll Need To Calculate Lost Wages

To calculate your lost wages accurately, start by determining the number of workdays you missed because of your injury. Then multiply that number by your average daily wage. For hourly workers, this is straightforward. If you earn a fixed salary, divide your annual salary by the number of working days in a year.

For example, if you make $60,000 per year and work 260 days a year, your daily wage is roughly $230. Missing 10 days would mean $2,300 in lost wages. If you missed work longer, or if you lost out on a bonus or commission during that time, that would be added as well.

If you’re self-employed or earn irregular income, you’ll likely need additional documentation. Tax returns, prior invoices, profit and loss statements, and other financial records can help establish your earnings.

What Proof Will You Need?

To recover compensation for your lost wages, you’ll need to obtain supporting documentation. This usually includes things like:

  • Medical records explaining why you couldn’t work
  • Pay stubs or direct deposit records from before the accident
  • A letter from your employer confirming your job details and pay rate
  • Tax documents if you’re self-employed or freelance

The stronger your paper trail, the harder it will be for the insurance company to argue against your claim.

What About Lost Earning Capacity?

If your injury is long-term or permanent, you may not be able to return to your old job or any job at all. In that case, you may be entitled to damages for lost earning capacity. These claims are more complex and often require expert testimony, such as input from economists or vocational experts. 

A qualified expert can evaluate the facts and circumstances of your case to estimate what you would have earned had the injury not occurred. This type of supporting evidence may be necessary to recover the full amount of compensation you’re entitled to.

Contact a Seattle Personal Injury Lawyer To Set Up a Free Consultation

Lost wage claims might sound simple, but insurance companies don’t always accept them without a fight. If your documentation isn’t airtight or if they question whether your injuries actually kept you from working, they might deny or reduce your payout.

An experienced personal injury attorney from Seattle Injury Law can help. We’ll work hard to maximize the value of your claim and put as much money in your pocket as possible. Contact us today to schedule a free case review.

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