Art. 2206. . . .
(1) The defendant shall be liable for the loss of earning capacity of the
deceased, and the indemnity shall be paid to the heirs of the latter; such
indemnity shall in every case be assessed and awarded by the court, unless
the deceased on account of permanent physical disability not caused by the
defendant, had no earning capacity at the time of his death[.]
The courts have assessed loss of earning capacity either through testimonial
or documentary evidence presented during trial. There are varying
precedents on the type of evidence required to prove loss of earning
capacity.
(4) Multiply the answer in (2) by the answer in (3). This is the loss of
earning capacity to be awarded.
When the evidence on record only shows monthly gross income, annual
gross income is derived from multiplying the monthly gross income by 12.
When the daily wage is the only information provided during trial, such
amount may be multiplied by 260, or the number of usual workdays in a
year,42 to arrive at annual gross income.
For this case, the victim was 54 years old at his time of death. The
prosecution was able to prove that his monthly income was ₱95,000.00.
With the amount multiplied by 12, the victim’s annual gross income is
₱1,140,000.00.
Applying the victim's life expectancy and annual gross income to the
general formula, or step 3: