If an injury has affected your ability to work, you may be able to pursue compensation for lost income. This can include time missed from work, as well as how your ability to earn a living may be impacted in the future.
Financial stress can make an already difficult recovery feel even harder. Missing work may leave you wondering how you will pay your bills, support your family, or keep future plans on track. Compensation for lost income can help replace some of those missed earnings, giving you more room to focus on your recovery.
Litco Law is here with free legal answers and support when you need it. We focus on you as a person, not just your claim. If there is anything we can do to make your life a little or a lot easier, we will do it.
Key Takeaways:
- If your ability to work has been affected, compensation may reflect both missed wages and changes to your future earning ability.
- Alberta’s no-fault benefits may cover a portion of your income, but they may not reflect the full impact of your situation.
- Working with a legal team can help you understand your options, navigate insurance, and ensure the full impact of your injury is recognized.
How Lost Income Is Calculated After an Injury
When an injury affects your income, it is not just about adding up missed pay. It starts with understanding how your situation has changed and how it may impact your future income. Our team takes the time to listen and learn how your injury has impacted your work, daily routine, and future plans.
Two common ways to assess the potential value of a personal injury claim include:
- Past loss of income: Refers to the wages or earnings missed between the date of the incident and when your claim is resolved
- Future loss of income: Income you were expected to earn but will likely miss after your claim is resolved, such as salary lost during an anticipated period away from work.
- Loss of earning capacity: This considers how an injury may affect your ability to earn a living in the future, whether that means reduced hours, changing roles, or not being able to return to the same type of work
Every situation is different, but our award-winning lawyers work to understand the full picture so your compensation reflects how your life has been affected and supports your path forward.
Section B Benefits for Lost Income in Alberta Car Accidents
When you’re injured in a car accident, your own auto insurance policy may provide specific support through Section B benefits. These are considered “no-fault” benefits, meaning they may be available regardless of who caused the accident.
In Alberta, Section B benefits typically cover up to 80% of your gross weekly income, to a maximum of $600 per week, if you are unable to work due to your injuries. This coverage is designed to provide short-term financial relief after a collision, but it may not fully account for long-term income loss or reduced earning capacity.
After a car accident, many people assume their insurer will handle everything. In reality, navigating Section B claims can become complicated, especially when injuries impact your ability to return to work. Having the right guidance can help ensure the process stays clear, and that nothing is overlooked while you focus on recovery.
What Documents Help Prove Lost Income After an Injury
Building a clear picture of income loss starts with gathering the right information. This helps show how your ability to work has been affected and supports your claim in a meaningful way.
The type of documentation may depend on how you earn your income:
- For employees: This often includes pay stubs, T4 slips, and a record of employment that shows missed time or changes in hours
- For self-employed individuals: Documents like Notices of Assessment, invoices, and business records can help show how your income and earning potential have been impacted
Medical documentation also plays an important role. Your recovery comes first, and your legal team works with medical professionals to clearly document how your injuries are affecting your ability to work. Together, this information helps create a more complete understanding of how your income has been impacted.
How Contingency Fees and Disbursements Work
Litco Law handles personal injury claims on a contingency fee basis. This means our legal fee depends on the compensation we recover for you.
You won’t pay anything while your claim is in progress. If we recover a settlement for you, our fee will be a percentage of that amount. We will explain the percentage before you hire us, and you will never be billed by the hour.
Disbursements are separate expenses that may be needed to investigate and support your claim. These can include the cost of obtaining police reports, medical records, court documents, or expert reports.
At Litco Law, we cover these expenses while your claim progresses. We will also explain how fees and disbursements are handled before you hire us, so you understand what to expect from the beginning.
How Our Legal Team Helps with Lost Income Claims
Recovering from an injury while dealing with financial worries can feel overwhelming. The legal process should not add to that stress. At Litco Law, we help our clients understand their options and keep things clear and manageable.
- Your own personal legal team: You’ll have access to your own legal team, what we call a pod, to guide you through each step.
- Consistent communication you can rely on: You can call us anytime, and we will respond within 24 hours. Once you are a client, you will hear from us every 30 days or less
- A compassionate, team-based approach Our team works together to understand the full impact of your income loss, helping ensure no important details are overlooked.
You don’t pay us anything while your claim is ongoing, and we only get paid if we’re able to recover compensation for you. You can call us at (587) 602-0514 or contact us online to get free legal answers from Lawyers You’ll Love.
Lost Income Claim Support Across Alberta
No matter where you are in Alberta, Litco Law offers support to help make the process easier and more accessible. Our team provides guidance and free legal answers, wherever you’re located.
Frequently Asked Questions About Loss of Income
If you have questions about how income loss works after an injury, you are not alone. Below are answers to some common questions . For guidance specific to your situation, you can reach out to our team for free legal answers at any time.
Can I Claim Lost Income if I Was Unemployed at the Time of the Accident?
In some situations, you may still be able to pursue compensation. This can depend on factors like your work history, job offers, or your ability to work before the injury. Contact us for free legal answers and to discuss how these factors may apply to your situation.
Do I Have to Pay Taxes on My Settlement for Lost Wages?
In most cases, you will not pay income tax or GST on the personal injury settlement payment you receive, including compensation for lost income. GST does apply to your lawyer’s fees, but not to the settlement itself. Tax treatment can depend on how a settlement is structured, so it may help to discuss your specific circumstances with your legal team.
What if I Used My Vacation Days or Sick Leave While I Was Hurt?
You may be able to claim vacation days used because of your injury, depending on how those days are treated by your employer and the circumstances of your claim. Contact us for free legal answers and to discuss whether this may apply to your situation.
How Long Do I Have to File a Claim for Lost Wages in Alberta?
In most cases, you have two years from the date of the accident to pursue an injury claim in Alberta, or your right to do so is lost forever. There can be exceptions, including when the injured person is a minor. It can still help to seek legal guidance early, while records are easier to locate and details of what happened are still fresh.
