Disclaimer: This content is for informational purposes only and does not constitute legal advice. I am not a lawyer. Consult a licensed workers’ comp attorney in New Mexico before making any legal decisions about your claim.
New Mexico Workers’ Comp Weekly Benefit Calculator (2026 Complete Guide)
In New Mexico, workers’ comp pays 66.67% of your average weekly wage (AWW), up to the current state maximum weekly benefit — which is capped at 100% of New Mexico’s State Average Weekly Wage (SAWW), currently approximately $1,118 per week for 2025 (updated annually by the New Mexico Department of Workforce Solutions). Your benefit is calculated using a 26-week wage lookback, and it must include overtime, tips, and qualifying second-job income. Most underpayments happen because employers or insurers quietly exclude one of those income sources when they calculate your AWW.
📣 From Shane: What 66.67% Actually Feels Like
After my 2015 injury, I thought the math was simple. Two-thirds of my paycheck — I figured I could manage. What I didn’t account for was that my AWW was quietly calculated using only my base hours, cutting out four months of overtime that I’d been working consistently. The insurer shaved $210 off my weekly check. Over nine months of recovery, that was nearly $8,000 they pocketed.
Here’s what I know now: 66.67% is already a gut punch. You’re living on two-thirds of your income while dealing with medical appointments, copays, and the psychological weight of not working. Don’t let a bad AWW calculation make it worse. This guide exists so you know exactly what you’re owed before the first check arrives — not after you’ve been underpaid for months.
How New Mexico Calculates Your Average Weekly Wage (AWW)
New Mexico’s AWW formula is governed by NMSA 1978 § 52-1-25.1. The mechanics are straightforward, but the details are where workers get hurt.
The Formula
AWW = Total Gross Wages Earned in the 26 Weeks Before the Injury ÷ 26
Weekly Benefit = AWW × 0.6667
The 26-week lookback is a hard rule. If you worked fewer than 26 weeks at your employer, the divisor adjusts to the number of weeks you actually worked.
What Counts as “Wages” in New Mexico
| Income Type | Included in AWW? | Notes |
|---|---|---|
| Regular hourly wages | ✅ Yes | Full gross amount |
| Overtime pay | ✅ Yes | Must be included per NMSA § 52-1-25.1 |
| Shift differentials | ✅ Yes | Treated as regular wages |
| Tips (reported) | ✅ Yes | If reported to employer for tax purposes |
| Performance bonuses | ⚠️ Maybe | Included if regular and recurring, not one-time |
| Holiday pay / vacation pay | ⚠️ Case-dependent | Contested; consult an attorney |
| Second-job wages | ⚠️ Conditional | Included if employer knew or should have known about concurrent employment |
| Signing bonuses | ❌ Generally No | One-time, not tied to labor performed |
| Expense reimbursements | ❌ No | Not considered wages |
New Mexico Workers’ Comp Weekly Benefit Table (2026)
The table below assumes standard total temporary disability (TTD) at 66.67% of AWW. Benefits exceeding the SAWW cap (~$1,118/week) are capped at that amount. Verify the current SAWW annually at the New Mexico Department of Workforce Solutions.
| Gross Weekly Wage | AWW × 66.67% | Estimated Weekly Benefit |
|---|---|---|
| $300 | × 0.6667 | $200.01 |
| $400 | × 0.6667 | $266.68 |
| $500 | × 0.6667 | $333.35 |
| $600 | × 0.6667 | $400.02 |
| $700 | × 0.6667 | $466.69 |
| $800 | × 0.6667 | $533.36 |
| $900 | × 0.6667 | $600.03 |
| $1,000 | × 0.6667 | $666.70 |
| $1,100 | × 0.6667 | $733.37 |
| $1,200 | × 0.6667 | $800.04 |
| $1,300 | × 0.6667 | $866.71 |
| $1,400 | × 0.6667 | $933.38 |
| $1,500 | × 0.6667 | $1,000.05 |
| $1,600 | × 0.6667 | $1,066.72 |
| $1,677+ | × 0.6667 | ~$1,118.00 (MAX) |
| $1,700 | Capped | $1,118.00 |
| $1,800 | Capped | $1,118.00 |
| $1,900 | Capped | $1,118.00 |
| $2,000 | Capped | $1,118.00 |
| $2,200 | Capped | $1,118.00 |
| $2,400 | Capped | $1,118.00 |
| $2,600 | Capped | $1,118.00 |
| $2,800 | Capped | $1,118.00 |
| $3,000 | Capped | $1,118.00 |
SAWW cap reflects 2025 rate (~$1,118). Confirm the current cap with the NM WCA or your attorney before relying on this figure.
What the Law Says vs. What Actually Happens
This is the section that would have saved me $8,000.
What the law says: Your employer or insurer must use your actual gross wages over 26 weeks — including overtime, shift differentials, and reported tips — to calculate your AWW.
What actually happens: Insurers and employers routinely pull only your base-rate wages from payroll records and ignore any variable income. This is not always intentional — payroll systems often export only regular wages unless someone manually adds overtime columns. But whether it’s negligence or strategy, the result is the same: you get underpaid.
How to Catch It
- Pull your own paystubs. Gather every paystub from the 26 weeks before your injury date. Add up total gross pay for each week. Divide by 26. That is your correct AWW.
- Compare to the insurer’s calculation. The insurer is required to show you how they calculated your AWW. If it doesn’t match your paystub math, challenge it in writing immediately.
- Request W-2s and employer payroll records. Under New Mexico workers’ comp rules, you are entitled to the wage records used to calculate your benefit.
- Flag missing income. If you worked a second job and your primary employer knew about it, those wages belong in your AWW. Document that your employer knew — text messages, scheduling discussions, even casual conversations.
Real Case Example: Fluctuating Hours and Overtime
Worker Profile: Carlos, a 34-year-old pipe fitter in Albuquerque, earning $22/hour with regular overtime, injured in Week 27 of employment.
His 26-Week Wage History:
| Weeks | Weekly Gross (Approx.) |
|---|---|
| 8 weeks | $1,210 (55 hrs w/ OT) |
| 10 weeks | $990 (45 hrs w/ OT) |
| 8 weeks | $880 (40 hrs, no OT) |
AWW Calculation:
- 8 weeks × $1,210 = $9,680
- 10 weeks × $990 = $9,900
- 8 weeks × $880 = $7,040
- Total 26-week wages: $26,620
- AWW = $26,620 ÷ 26 = $1,024.62
Weekly Benefit = $1,024.62 × 0.6667 = $683.11/week
What the insurer tried to pay: The insurer used only Carlos’s base 40-hour rate ($880/week) and calculated a benefit of $586.76/week — a shortfall of $96.35 per week. Over a six-month recovery, that’s $2,504.10 underpaid.
Carlos’s attorney caught the discrepancy on the first check, submitted corrected payroll documentation, and had the benefit adjusted within three weeks.
Frequently Asked Questions
Q: What is the minimum workers’ comp weekly benefit in New Mexico?
Direct Answer: New Mexico does not set a hard statutory minimum dollar amount for TTD benefits the way some states do. Your benefit is purely a function of your AWW — 66.67% of whatever you earned. However, if your calculated benefit falls below what is economically viable, an attorney can help you argue for consideration of all income sources that may have been excluded from the AWW calculation.
Detailed Explanation: For very low-wage workers — those earning $300 to $500 per week — the math produces benefits in the $200 to $333 range. That’s an extremely difficult financial situation. New Mexico does not have a wage floor supplement like some states do. What this means practically is that if you’re a part-time worker with a low AWW, you need to make absolutely certain every qualifying income source is included: tips, second jobs, and all hours worked. An experienced workers’ comp attorney can often identify overlooked income that bumps your AWW higher than you’d expect.
Q: How does New Mexico handle workers who were hired less than 26 weeks before the injury?
Direct Answer: If you worked fewer than 26 full weeks for your employer before the injury, New Mexico law adjusts the divisor to the number of weeks you actually worked — not 26.
Detailed Explanation: Under NMSA § 52-1-25.1, the AWW for short-tenure employees is calculated by dividing total wages earned by the number of weeks employed. So if you worked 12 weeks and earned $14,400 total, your AWW is $14,400 ÷ 12 = $1,200. This is actually a protective mechanism — it prevents your AWW from being artificially deflated by weeks where you had zero income simply because you weren’t employed yet. One important caveat: if you had prior employment in a similar trade, New Mexico law may allow the court or a hearing officer to use comparable wages from a similar worker to calculate a fair AWW. This is a contested area that often benefits from attorney involvement.
Q: Does workers’ comp in New Mexico cover overtime pay in the AWW?
Direct Answer: Yes. Overtime pay is explicitly included in the AWW calculation under New Mexico law. Any employer or insurer that excludes overtime from your AWW is calculating your benefit incorrectly.
Detailed Explanation: This is the single most common source of underpayment I’ve seen researched across New Mexico claims. Overtime pay is gross income earned through labor, and NMSA § 52-1-25.1 does not create a distinction between regular and overtime pay. If you worked consistent overtime in the 26 weeks before your injury, that income must be factored into your AWW. The way to prove it: pull every paystub from the lookback period, separately identify regular and overtime earnings, and verify that both columns are reflected in the insurer’s wage calculation. If your paystubs show OT and the insurer’s AWW calculation doesn’t, file a written dispute immediately and document the date you sent it.
Q: Can I work a light-duty job while collecting workers’ comp in New Mexico?
Direct Answer: Yes, but your weekly benefit will be reduced. New Mexico uses a “wage loss” model for partial temporary disability (PTD). If you return to light-duty work earning less than your pre-injury AWW, you receive a proportional partial benefit.
Detailed Explanation: The partial temporary disability benefit in New Mexico is calculated as 66.67% of the difference between your pre-injury AWW and your post-injury light-duty wages. Example: Pre-injury AWW = $1,000. Light-duty wages = $600. Wage loss = $400. Partial benefit = $400 × 0.6667 = $266.68/week. You also keep your $600 in light-duty wages, for a combined total of $866.68 — still less than your pre-injury income, but significantly more than a full TTD benefit alone. Critical warning: never accept a light-duty assignment that your authorized treating physician has not cleared. Performing duties outside medical restrictions can be used against you in your claim and may expose you to allegations of benefit fraud.
Q: What happens when my New Mexico workers’ comp benefit hits the maximum cap?
Direct Answer: Once your calculated TTD benefit reaches 100% of the SAWW (~$1,118/week in 2025), it is hard-capped at that amount regardless of your actual wage loss. High-earning workers in
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