how to compute loss of earning capacity

The rule is that documentary evidence should be presented to substantiate a claim for loss of earning capacity.¹⁰ In this case, Liberty presented a certification from Tanod Publishing which showed that Melendres was a photo correspondent for Tanod Newspaper and that "his monthly salary ranges from P1,780 to P3,570 on per story basis."¹¹ Liberty presented another certification from Tanod Publishing which showed that Melendres received the total amount of P24,990 representing payment of honoraria and transportation allowance from 1 January to 31 July 2006.¹² The Court notes that the defense did not object when the prosecution presented these documents before the trial court. The rule is that evidence not objected to is deemed admitted and may be validly considered by the court in arriving at its judgment.¹³ It was also established that at the time of his death, Melendres was 41 years old.¹⁴

Thus, Melendres’ net earning capacity can be derived from two sources: (1) his monthly salary¹⁵ and (2) his honorarium and transportation allowance.¹⁶ 

Loss of earning capacity is computed as follows:

Net Earning
Capacity = Life expectancy x Gross Annual Income – Living Expenses

= [2/3 (80 – age at death)] x GAI – [50% of GAI]

= [2/3 (80 – 41)] x P74,940¹⁷ – P37,470

= [2/3 (39)] x P37,470

= 26 x P37,470

Net Earning
Capacity = P974,220