Guide to Loss of Earnings in Tort Claims

What is Loss of Earnings in a Tort Claim?

Loss of earnings (or loss of wages) is one of the central components of compensation in a tort claim. When a person is injured in a traffic accident, workplace accident, or as a result of public negligence, they may lose income during the period when they cannot work. This can be temporary loss (such as two months missed from work) or permanent loss (when the injured party cannot return to their previous job).

In a tort claim, the injured party is entitled to receive compensation for all income lost due to the injury. This includes salary not received, missed bonuses, employment benefits, and payments that should have been received had the accident not occurred.

Mandelboim, Gor, Witzman-Gor Law Firm specializes in representing claimants only in tort cases, and we have over 18 years of experience calculating and collecting loss of earnings compensation from the National Insurance Institute, insurance companies, and other bodies. Each case is handled with care and personal attention to ensure you receive all your rights.

What Does Wage Loss Compensation Include?

Wage loss compensation includes:

• Unpaid salary — all income you lost during the recovery and disability period.
• Bonuses and benefits — bonuses you did not receive, holiday pay, recuperation allowance, health insurance, pension fund, and any other employment benefit you had.
• Loss of future income — if the injury caused you permanent disability and you cannot return to your previous job, you are entitled to compensation for income loss for life (or a reasonable period, depending on age and circumstances).
• Medical and treatment expenses — in some cases, treatment and therapy expenses also affect your earning capacity.

The calculation of compensation depends on several factors: your salary level before the accident, the length of the recovery period, the percentage of disability determined by a medical committee, and more. Each case is unique, so it is important to consult with an experienced attorney in this field.

How is Loss of Earnings Compensation Calculated?

Calculation of loss of earnings in a tort claim is based on several stages:

Stage 1: Establishing Base Salary

First, it is determined how much you earned before the accident. This includes basic salary, bonuses, commissions, recuperation allowance, and any other financial benefit you received from your employment. It is important to collect documents such as pay slips, employer statements, and invoices (if you are self-employed).

Stage 2: Determining the Period of Injury

How long were you unable to work? This can be several weeks, months, or years. During this period, you are entitled to compensation for all income lost. If you were placed on sick leave (as per law) from work, the period begins from the date of the accident until the date of release from sick leave.

Stage 3: Calculating Temporary Income Loss

For each day you did not work, you are entitled to compensation for daily wages. This is calculated as monthly salary divided by 30 (or in accordance with labor law). If you work on an hourly rate, the calculation will be hourly.

Stage 4: Assessing Future Income Loss

If the injury caused you permanent disability, you are entitled to compensation for income loss that will be withheld from you in the future. This is calculated based on: your salary before the accident, the percentage of disability determined by a medical committee, expected retirement age, and other factors. The calculation is complex and requires legal expertise.

Stage 5: Reductions and Additional Factors

In some cases, compensation may be reduced due to factors such as: disqualification due to the injured party's conduct (for example, violation of traffic law), income received from the National Insurance or other sources, or offsetting payments already received.

Due to the complexity of these calculations, it is essential to consult with an experienced attorney in tort claims. Mandelboim, Gor, Witzman-Gor Law Firm will help you calculate your precise compensation and file a properly substantiated claim.

Examples of Lost Earnings Compensation Calculation

To better understand how lost earnings compensation is calculated, let's look at a few examples:

Example 1: Temporary Loss (Two Months of Incapacity)

Dan works as a manager at a company with a monthly salary of 8,000 NIS. He was injured in a traffic accident and was unable to work for two months (60 days). During this period, he did not receive a salary. The compensation for lost earnings would be: 8,000 NIS × 2 months = 16,000 NIS (without taking into account other expenses or payments already received).

Example 2: Future Loss (Permanent Disability)

Sarah works as a teacher with a monthly salary of 10,000 NIS. She is injured in an accident and is determined to suffer from 30% disability (according to a medical committee). She cannot return to her previous job. Due to the disability, she will only be able to earn 70% of her previous salary. If her retirement age is 67 and she is currently 40 years old, she has 27 more years of work ahead. The compensation for future lost income would be calculated as: 10,000 NIS × 30% × 27 years × 12 months = a substantial amount (with adjustments for interest and other factors).

Example 3: Total Loss (Temporary and Future)

Carmel works as a technician with a monthly salary of 6,500 NIS. He is injured in a work accident, was unable to work for three months, and then returned to work partially (60% of his previous capacity). His compensation would include: (a) temporary loss: 6,500 NIS × 3 months = 19,500 NIS; (b) future loss: a reduction of 40% of the salary for an additional period (until retirement age); (c) missed benefits (bonuses, holiday allowances, etc.).

As you can see from the examples, calculating compensation can be extremely complex. This is why it is essential to consult with an attorney experienced in tort law. Mendelboim, Gor, and Witzman-Gor Law Firm will use all of your information to calculate the most accurate compensation.

What is the Process for Filing a Lost Earnings Claim?

When you want to file a claim for lost earnings, there are several steps you must go through:

Step 1: Collection of Documents and Evidence

First, we collect all relevant documents: payroll stubs, employer statements, medical certificates, injury reports (from the National Insurance), and photographs from the accident. Each document helps us prove your lost earnings.

Step 2: Medical Examination and Determination of Disability Percentage

In serious accidents, the injured party is referred to a medical committee that determines the percentage of disability. This directly affects the amount of compensation. We accompany you through this process and ensure that the committee carefully reviews all medical findings.

Step 3: Filing a Claim or Demand

We file a formal claim with the National Insurance, the insurance company of the party responsible for the accident, or another relevant body. The claim includes an accurate calculation of lost earnings, supporting evidence, and legal arguments.

Step 4: Negotiation or Litigation

After filing the claim, there may be negotiations with the other party (insurance company or National Insurance). If we do not reach an agreement, the case may go to court.

Step 5: Receiving Compensation

After a judgment or settlement, you receive the compensation. We ensure that the payment is made in full and without delays.

Each step in the process requires legal expertise and knowledge of tort law. Mendelboim, Gor, and Witzman-Gor Law Firm handles each step with care and professionalism to ensure you receive your full compensation.

Why Choose Mandelbaum, Gor, Witzman-Gor and Associates?

Mandelbaum, Gor, Witzman-Gor and Associates is a boutique family law office specializing in representing claimants only in tort law. Since 2008, we have represented victims of traffic accidents, workplace accidents, and cases of public negligence. Our experience in calculating loss of earnings compensation is deep and detailed.

When you choose us, you choose:

• 18+ years of experience in tort claims and calculating complex compensations.
• Representation of claimants only — we do not represent insurance companies or National Insurance, so you know we are on your side.
• Personal and dedicated relationships — each case is handled with care and personal attention.
• Free initial consultation — you can speak with us for free before deciding to proceed.
• Located in Ramat Gan and Petach Tikva — easy to reach from the center and surrounding areas.

We understand that an accident is a difficult experience. We are here to ensure you receive your full compensation, without unnecessary harassment.