What Is Loss Of Earning Capacity
The accident has changed what kind of work you can realistically do from now on.
Loss of earning capacity is compensation for a reduced ability to earn in the future. It is separate from income you have already missed.
It applies where an injury genuinely limits the kind of work you can do going forward. This might mean changing roles, working fewer hours, or leaving physical work altogether.
Take a site supervisor who climbs scaffolding all day. A road accident leaves a permanent knee restriction. He can still work, but only in a desk role that pays less. The gap between his old and new earning potential is what this claim addresses.
How is it different from ordinary lost income?
Loss of earnings before trial covers days or weeks already missed. It is proven with payslips and medical certificates.
Loss of earning capacity looks forward. It asks how the injury changes your realistic future earnings. It is usually proven through a specialist’s opinion on your physical limits.
Who can claim it?
It can apply even if you are still working. A doctor needs to support that your ability to earn has genuinely been reduced, for example by a permanent injury that rules out physical work.
You do not need to have stopped working. Your earning potential only needs to have changed for the worse.
What is the age limit?
This claim generally cannot be made once the injured person is aged 60 or over.[1] Below that age, the assessment considers how many working years remain and how the injury affects them.
What supports the claim?
A clear medical opinion matters most. It should describe the physical limit and how it affects the work you can realistically do. A general sense that things feel harder is much weaker on its own.
Making a loss of earning capacity claim and how future earning capacity is valued explain the assessment. A road accident claim covers the wider process.
Putting this part of the claim together is where an independent lawyer can act for you. For first contact, send only the accident date, location, whether anyone was injured (yes/no) and the police report status. Keep your work details and the doctor’s advice private until an identified independent lawyer contacts you and specifically asks you to share them directly.
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Common questions
How is loss of earning capacity different from loss of earnings?
Loss of earnings covers income actually missed between the accident and trial or settlement. Loss of earning capacity looks ahead instead, at a reduced ability to earn going forward, and the two are proven with different evidence even though both can apply to the same claim.
Do I need to have already lost income to claim for this?
No. This is about your future earning ability, so it can apply even if you are currently still working, provided a doctor supports that your ability to earn has genuinely been reduced going forward, for example by a permanent physical restriction.
I am 58. Can I still claim for loss of earning capacity?
It may still apply, since the current cutoff is age 60, but the shorter time remaining before that limit is factored into the assessment. Confirming your exact position is worth doing with your specific injury and age in mind.
What if I can still work, just not in my old role?
That is a common situation. Being pushed into lower paid or lighter work because of an injury, even while still employed, can support a claim for reduced earning capacity, since the comparison is with what you could have earned before the accident.
Sources
- Skrine, The Civil Law (Amendment) Act 2019 In force 1 September 2019 (Act A1591), amending s.28A of the Civil Law Act 1956 (accessed 2026-09-22)
Need a lawyer to handle your injury claim?
For people seeking legal representation. For general information, please use our guides and tools.