What is the difference between loss of income and loss of earning capacity in an Ontario injury claim?

Loss of income compensates you for wages you actually lost, or will lose, because you were unable to work - a fairly direct calculation based on your employment history and time off. Loss of earning capacity is a broader, more forward-looking concept: it compensates you for a reduced ability to earn income in the future, even if you have returned to your job or have not yet suffered a clear, quantifiable wage loss, because the injury has made you a less competitive worker, limited the range of jobs available to you, or reduced your ability to work full hours or advance in your career.

This distinction matters most for people whose future income is harder to predict from past earnings alone - younger workers early in their careers, people who were between jobs, and self-employed or irregularly employed people, where a simple pre-injury versus post-injury wage comparison does not capture the real impact. Both types of loss can be claimed together where the facts support each, and courts look at things like the nature of the injury, the person's skills and industry, and expert evidence about the labour market to assess earning capacity loss, since it cannot simply be read off a pay stub the way past income loss often can.