Maximum AWW for New Mexico Workers' Compensation
In New Mexico, the Average Weekly Wage (AWW) used to determine workers' compensation benefits cannot exceed 300% of the state's average weekly wage index, which is updated annually. This cap sets the highest possible benefit amount a claimant can receive for wage replacement during a disability.
More from this site
Keep reading the latest coverage
How the AWW is Calculated
The AWW is derived from the claimant's earnings over a 52‑week period preceding the injury. Employers report total wages, including overtime and bonuses, then divide by 52 to get a weekly average. If that figure surpasses the statutory maximum, the benefit is reduced to the capped amount.
Current Maximum AWW Figures
As of the latest update, New Mexico's average weekly wage index is $1,200. Applying the 300% cap yields a maximum AWW of $3,600. Consequently, the highest weekly wage‑replacement benefit—typically two‑thirds of the AWW for temporary total disability—is $2,400.
Impact on Different Benefit Types
Temporary total disability (TTD) benefits are paid at two‑thirds of the AWW, subject to the maximum. Permanent partial disability (PPD) benefits use a schedule that references the AWW, so the cap also limits those awards. Medical expenses and vocational rehabilitation costs are not subject to the AWW cap.
Comparing New Mexico's Cap to Other States
| State | Maximum AWW | Benefit Rate |
|---|---|---|
| New Mexico | $3,600 | 2/3 of AWW (TTD) |
| Texas | $5,800 | 2/3 of AWW (TTD) |
| California | $1,800 | 2/3 of AWW (TTD) |
Key Considerations for Claimants
- Verify your reported earnings are accurate; errors can lower the AWW.
- If your AWW exceeds the cap, benefits will be calculated using the maximum allowed amount.
- Seek legal advice if you believe the cap is applied incorrectly or if you have multiple employers.
- Regularly check the state's updated wage index, as the maximum AWW can change each year.