How is workers' comp premium calculated?

The core formula is payroll divided by 100, multiplied by the class rate, then multiplied by your experience modifier, plus an expense constant. So a $250,000 payroll at a $1.50 rate gives a $3,750 manual premium before the mod and fees. This calculator follows that standard NCCI structure.

What is an experience modifier?

The experience modifier (or e-mod) compares your past claims to others in your class. A mod of 1.00 is average; below 1.00 lowers your premium for a good safety record, while above 1.00 raises it. Small employers often have no mod and use 1.00.

How does rating work in New Mexico?

New Mexico is an NCCI open-rating (competitive) state. NCCI files advisory loss costs by class code, and each carrier applies its own loss-cost multiplier to set the final rate. Because carriers set their own rates, the class rates in this tool are illustrative — your quote may differ.

What is the New Mexico Workers' Compensation Assessment Fee?

New Mexico charges a per-employee assessment fee each quarter to fund the Workers' Compensation Administration — $2.30 from the employer and $2.00 from the employee, totaling $4.30 per covered worker per quarter. The tool adds the employer's $2.30 quarterly share (about $9.20 per employee a year).

Why might my actual premium differ?

Premiums are based on audited payroll, the carrier's filed rates, your exact class codes, your experience mod, and any schedule credits or debits. This tool gives a planning estimate; a licensed New Mexico carrier or agent provides the binding quote.

New Mexico Workers' Compensation Premium Calculator

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The New Mexico Workers’ Compensation Premium Calculator estimates what an employer will pay to insure workers in New Mexico. Workers’ comp premium is driven by three things: your payroll, the classification rate for the type of work, and your experience modifier. New Mexico is an NCCI open-rating state, so on top of the carrier premium you also owe the state Workers’ Compensation Assessment Fee. This tool combines all of those into an annual estimate.

How it works

The standard premium formula is (payroll ÷ 100) x class rate x experience mod. The class rate is expressed per $100 of payroll and reflects the injury risk of the job — clerical work might be $0.16 while residential construction can exceed $11. Multiplying by your experience modifier adjusts for your own claims history (1.00 is average). An expense constant — a small flat carrier fee — is added. Because New Mexico uses competitive rating, each carrier files its own loss-cost multiplier, so the rates here are illustrative. Finally the tool adds the New Mexico assessment fee: the employer pays $2.30 per covered employee per quarter, roughly $9.20 a year per worker.

Example and notes

A retail store with $250,000 of payroll at a $1.85 class rate and a 1.00 mod has a manual premium of about $4,625; adding an expense constant and the assessment fee for five employees brings the annual cost a little higher. A safer record (mod of 0.85) would cut the premium proportionally, while a poor record raises it. Because New Mexico carriers set their own rates, treat this as a planning figure and get a quote from a licensed carrier for the binding number. All math runs locally in your browser.