Last updated · By Mustafa Bilgic
How to calculate lost wages
The core sum is simple: your normal earnings × the time you lost. How you find your “normal earnings” depends on how you are paid.
If you are paid hourly
Multiply your hourly rate by the number of hours you would have worked but could not. If you earn $20 an hour and missed 80 hours (two full weeks), that is $1,600 in lost wages before any overtime.
If you are salaried
Divide your annual salary by the number of working days in a year — commonly 260 (5 days × 52 weeks) — to get a daily rate, then multiply by the days you missed. On a $52,000 salary that is $200 a day; ten days off work is $2,000.
If you are self-employed
You cannot rely on payslips, so loss is proven from accounts, invoices and tax returns — typically by comparing your earnings during recovery with the same period in previous years, or with reasonable forecasts. Cancelled contracts and lost bookings strengthen the claim.
What else counts
- Overtime, bonuses, tips and commission — recoverable if you can show a regular pattern of earning them.
- Used sick pay or holiday — paid leave you were forced to use up still has a value and is often recoverable.
- Pension contributions — employer contributions you lost during time off can sometimes be claimed.
- Future loss of earnings — for serious injuries that reduce your earning capacity going forward; see our future loss of earnings guide.
Lost wages — frequently asked questions
How do I calculate lost wages after an accident?
Multiply your normal pay rate by the time off work. Hourly: rate × hours missed. Salaried: annual salary ÷ 260 working days × days missed. Add provable overtime, bonuses, tips and any sick or holiday you were forced to use.
Can I claim lost wages if I used sick pay?
Usually yes. Paid sick leave or holiday you had to use during recovery still represents a loss and is frequently recoverable. Keep payslips and a letter from your employer confirming the dates.
How do I prove lost wages?
Employed people use payslips plus a letter from their employer stating the time off and pay lost. Self-employed people use accounts, invoices, bank statements and tax returns. Medical sick-notes tie the time off to the injury.
Are lost wages the same in the UK and US?
The principle is identical — you recover the earnings the accident cost you. The UK usually claims them net of tax as special damages; the US treats them as economic damages. Self-employed claims are evidenced from accounts in both.