We present the luminosity function of 90-μm-selected galaxies from the European Large Area ISO Survey (ELAIS), extending to z=0.3. Their luminosities are in the range 10^9\lt h 65 -2L/L_solar\lt10^12, i.e. non-ultraluminous. From our sample of 37 reliably detected galaxies in the ELAIS S1 region from the Efstathiou et al. S_90\gt=100mJy data base, we have found optical, 15-μm or 1.4-GHz identifications for 24 (65 per cent). We have obtained 2dF and UK Schmidt FLAIR spectroscopy of 89 per cent of identifications to rigid multivariate flux limits. We construct a luminosity function assuming that (i) our spectroscopic subset is an unbiased sparse sample, and (ii) there are no galaxies that would not be represented in our spectroscopic sample at any redshift. We argue that we can be confident of both assumptions. We find that the luminosity function is well described by the local 100-μm luminosity function of Rowan-Robinson, Helou \amp Walker. Assuming this local normalization, we derive luminosity evolution of (1+z)^2.45+/-0.85 (95 per cent confidence). We argue that star formation dominates the bolometric luminosities of these galaxies, and we derive comoving star formation rates in broad agreement with the Flores et al. and Rowan-Robinson et al. mid-infrared-based estimates.