Multiplicand

The multiplicand is the yearly income figure used as the base for calculating a future loss, before the multiplier is applied.

Malaysian courts generally use the claimant’s or the deceased’s earnings at the time of the injury or death, not a projected future salary, and then deduct the person’s own living expenses from that figure. The result is the annual sum treated as genuinely lost each year.

Proving the multiplicand accurately depends on real records, such as payslips, tax filings or business accounts, since a court cannot value future loss from an estimate alone.

How future earning capacity is worked out explains how the multiplicand and the multiplier combine.

A plain-language road accident and injury claims resource for Malaysia.

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