Lost income claims for employees

Loss of income for an employee is usually the most straightforward version of this claim, because payslips and EPF (Employees Provident Fund) records already exist. The claim covers the pay you actually missed between the accident and trial or settlement, one of the heads of damage a court assesses under Malaysian law.^[1] Good records from your employer make this head of loss faster to prove than almost any other.

The evidence that supports it best

• Payslips covering the months before and after the accident.
• An employer’s letter confirming your role, salary, and the period affected.
• EPF or SOCSO (Social Security Organisation) statements showing contribution history.
• Medical certificates or hospitalisation leave records covering the time off.

What if you used annual or medical leave instead of unpaid leave

Using paid leave to cover recovery time does not necessarily mean nothing was lost. The leave itself has a value, and some claims reflect the depletion of leave entitlement rather than a direct pay cut. This is worth raising rather than assuming it does not count.

Returning to work on reduced hours or duties

Coming back part-time, or on lighter duties at reduced pay, is common after a serious injury. The difference between your normal earnings and what you actually received during that period can generally still be claimed, provided your employer’s records show the change clearly.

What can complicate an employee’s claim

Informal arrangements, such as being paid partly in cash on top of a formal salary, or an employer reluctant to confirm details in writing, can slow this down. Neither is unusual, and both are usually solvable with the right records or a direct request to the employer. Unlike self-employed income loss, an employee’s claim rarely needs bank or tax records to establish what was earned.

What to do next

Ask your employer early for a written confirmation of your salary and the period you were unable to work normally. Proving your lost income covers this evidence in more depth, and loss of earnings explains how this head fits into how compensation is worked out.