Lost Wages & Earning Capacity Calculator — Canada

You need: recent pay stubs (6–12 months), T4 slips (2–3 years), employer letter confirming missed work and salary, and if self-employed — Notice of Assessments and business financial statements. For future loss claims, a vocational rehabilitation expert and economist are typically required.

No. In Canada, personal injury compensation (including lost wages) is generally non-taxable under the Income Tax Act. This is a significant advantage over employment income. Your insurer or the defendant cannot deduct income tax from your settlement.

Loss of competitive advantage (also called loss of earning capacity) compensates you for being at a disadvantage in the labour market — even if you currently earn the same income. Courts recognize that an injured person may be more vulnerable to job loss, be unable to advance, or have fewer employment options as a result of the injury.