New Mexico Workers' Comp Rate Calculator

Workers' comp in New Mexico: what's different

New Mexico splits the job between two agencies. The Workers' Compensation Administration (WCA) enforces the coverage mandate and runs the Uninsured Employers' Fund. Premiums are a separate matter: the WCA says it does not set class codes or premiums, and it sends those questions to the Office of Superintendent of Insurance (OSI). NCCI is the licensed advisory organization that files loss costs with OSI on behalf of insurers.

Who must carry coverage

Section 52-1-6 NMSA applies the Workers' Compensation Act to employers of three or more workers. Employers in activities that require a license under the Construction Industries Licensing Act are covered regardless of headcount. A business below the line may buy coverage voluntarily or file an election with the WCA.

Who counts toward three:

• Part-time and seasonal workers count. So do family members who are paid wages.
• Executive employees count. For a corporation or LLC, an officer who owns at least 10% of the stock or LLC interest is an "executive employee." That person may file an election to be excluded from coverage, but the WCA still counts them toward the three.
• Limited partnerships. The WCA counts the partners of a limited partnership as employees for the headcount.
• Construction. A construction corporation or LLC must carry coverage even with a single executive employee. A sole proprietor in construction can opt out by filing the CID Sole Proprietor Affirmative Election form.
• Farms and ranches. The statute still excludes farm and ranch laborers, but the New Mexico Supreme Court struck that exclusion down on June 30, 2016. Farms with three or more employees now need coverage, the WCA says.
• Domestic workers and real estate salespeople. Private domestic servants are outside the Act. The WCA's employer guidebook says coverage is not required for real estate salespeople, though the statute lets the person they work for elect into the Act.

An out-of-state employer with three or more employees in total must buy a New Mexico policy even if only one of them works in the state. Calling someone an independent contractor or issuing a 1099 does not settle their status; the WCA says it turns on who has the right to control the work.

Where coverage comes from

Employers can buy a policy from a private insurer licensed by OSI. Some large businesses can self-insure with written approval from the WCA director. Businesses in the same or similar line of work can form a group self-insurance fund if they belong to a trade association that has existed for at least five years, and public entities can pool their risk.

New Mexico has no monopolistic state fund. In 1990 the Legislature created an "employers mutual company" (NMSA Chapter 52, Article 9) as a nonprofit public corporation organized as a domestic mutual insurer. The statute requires it to compete with other insurers, says it is not a state agency, bars state appropriations, and declares that the state is not liable for its debts.

Who sets rates

Insurers must use the uniform classification and experience rating systems filed by the advisory organization the superintendent designates. Each insurer may build its rates on NCCI's loss costs, typically adding a loss cost multiplier for its expenses, so prices differ between companies.

The latest OSI news release we found approved an average 10.7% cut in voluntary loss costs for policies renewing on or after January 1, 2023, the eighth straight annual decrease. NCCI then filed for an 11.7% decrease effective January 1, 2025. An NCCI presentation from November 2025 lists New Mexico's change effective January 1, 2026 as -15.6% and does not mark it pending. We found no OSI order or release for either year. On August 27, 2026, NCCI asked OSI for a 0.5% cut effective January 1, 2027; we found no decision on it on OSI's website as of October 17, 2026.

Experience rating

Your mod is built from claims data insurers report to NCCI, and new businesses start at 1.00, the WCA's guidebook says. One New Mexico twist: claims by participants in the New Mexico Works Act program are tracked separately, and the first-year portion for each participant is left out of the employer's mod.

If no insurer will write you

An employer turned down in writing by at least two insurers can apply to the New Mexico Workers' Compensation Assigned Risk Pool. Every workers' comp insurer must belong to the pool, the superintendent appoints its board, and a servicing carrier issues the policy. NCCI provides plan and pool administration under contract. Pool coverage costs more; the WCA's guidebook (based on 2017 law) describes a 10% surcharge on manual premium, with a possible Assigned Risk Adjustment Program surcharge on top.

Penalties for going uninsured

• Fines. The WCA director may fine $25 to $1,000 per violation of the Act. WCA guidance warns of penalties of up to $1,000 for each day a business is out of compliance.
• Shutdown. The director can ask a district court to stop the business from operating until it files proof of insurance.
• Lawsuits. An injured worker may sue an uninsured employer in district court, and the WCA notes that compensatory and punitive damages are possible.
• Fund reimbursement. If the Uninsured Employers' Fund pays the worker, the employer must repay every dollar plus interest, costs, and fees, and a penalty of 15% to 50% of the award. For injuries on or after July 1, 2025, the fund pays at most $75,000.
• Construction license. The Construction Industries Division can suspend or revoke a contractor's license for failing to keep coverage.

Your ongoing obligations

• Post the poster with the forms. Display the WCA poster with the Notice of Accident forms attached. Workers have 15 days to give written notice, stretched up to 60 if the poster is missing.
• Report injuries. The WCA asks employers to report every accident to their insurer within 72 hours. For any injury causing more than seven days of lost time, the first report of injury is due to the WCA within 10 days, and the worker gets a copy.
• Proof of coverage. Your insurer files proof of coverage with the WCA within 30 days of the policy's effective date, and must report a cancellation within 10 days.
• Pay the quarterly fee. For each covered employee on the last working day of the quarter, the employer owes $2.55 and withholds $2.25 from the worker. File it with the Taxation and Revenue Department on Form TRD-41431. Paying the fee is not insurance.
• Safety inspection. If your policy premium is $15,000 or more, send the WCA proof of an annual safety inspection within 60 days of issue or renewal. Skipping it can cost up to $5,000.

Worked example: how the calculator estimates premium

Premium = (payroll / 100) x rate per $100 x experience mod

We found no class-level loss costs on the WCA or OSI websites, and NCCI says its loss cost filing circulars are not available to non-affiliates. Every number below is illustrative, not a filed figure for class 5551 (roofing).

• Hypothetical roofing payroll: $250,000
• Illustrative loss cost: $6.00 per $100
• Illustrative loss cost multiplier: 1.40
• Hypothetical experience mod: 0.95

Step by step

1. Payroll in hundreds: $250,000 / 100 = 2,500
2. Rate per $100: $6.00 x 1.40 = $8.40
3. Manual premium: 2,500 x $8.40 = $21,000
4. Apply the mod: $21,000 x 0.95 = $19,950

A premium this size is above the $15,000 line, so this roofer would also owe the WCA proof of an annual safety inspection. With 10 covered employees, the quarterly fee adds $25.50 from the employer plus $22.50 withheld from workers.

Frequently asked questions

Official sources

• NM Workers' Compensation Administration, FAQs
• WCA Employer Compliance Bureau
• WCA Self-Insurance and Regulatory Audit Bureau
• WCA Uninsured Employers' Fund
• WCA Employer Guidebook (2022 edition)
• WCA workplace poster
• 11.4.2 NMAC (data reporting and safety)
• 11.4.11 NMAC (proof of coverage)
• NMSA 1978, Chapter 52 (NM Compilation Commission)
• NMSA 1978, Chapter 59A, Articles 17 and 33 (NM Compilation Commission)
• NM Taxation and Revenue Department, Workers' Compensation Fee
• OSI news release, 2023 loss cost decrease
• NCCI, New Mexico loss cost filing summary (January 1, 2025)
• NCCI, New Mexico loss cost filing summary (January 1, 2027)
• NCCI update to the Idaho Industrial Commission, November 19, 2025
• NCCI, Residual Market Management Summary 2025

Sources accessed 2026-10-17.

This is general information, not legal advice. Confirm details with the New Mexico Workers' Compensation Administration.

Reviewer: Sam Newland, CFP, Founder of Benefitra. Last updated October 17, 2026. How the calculator works. Editorial policy.