Understanding Worker’s Compensation Payments- How Much Does It Cover in New Mexico-
How much does workers comp pay in New Mexico? This is a crucial question for both employers and employees in the state, as workers’ compensation insurance is designed to provide financial support to workers who are injured or become ill as a result of their job. Understanding the details of workers’ compensation benefits in New Mexico can help both parties navigate the system effectively and ensure that injured workers receive the necessary support during their recovery.
Workers’ compensation in New Mexico is governed by the New Mexico Workers’ Compensation Act, which outlines the benefits and coverage provided to injured workers. The amount of compensation paid can vary depending on several factors, including the severity of the injury, the type of disability, and the worker’s average weekly wage.
When determining the amount of workers’ compensation benefits, the first step is to calculate the worker’s average weekly wage (AWW). This is done by averaging the worker’s earnings over a specific period, typically the 52 weeks preceding the injury. The AWW is then used to calculate the monetary benefits for temporary total disability (TTD), temporary partial disability (TPD), and permanent partial disability (PPD).
For TTD, which is paid when a worker is unable to work due to their injury, the compensation rate is typically two-thirds of the worker’s AWW. However, there is a cap on the TTD benefits, which is adjusted annually. In 2021, the maximum TTD benefit was $1,040.50 per week.
TPD benefits are paid when a worker is able to work, but at a reduced capacity, due to their injury. The compensation rate for TPD is also two-thirds of the worker’s AWW, with the same weekly cap as TTD. TPD benefits are usually paid for the duration of the disability, up to a maximum of 400 weeks.
PPD benefits are paid when a worker has reached maximum medical improvement and has a permanent impairment. The amount of PPD benefits depends on the degree of impairment and the worker’s occupation. PPD benefits are calculated as a percentage of the worker’s AWW, with a maximum benefit of $1,040.50 per week.
It’s important to note that workers’ compensation benefits in New Mexico also include medical benefits, which cover the costs of necessary medical treatment related to the work injury. Additionally, workers may be eligible for vocational rehabilitation services to help them return to work if their injury prevents them from performing their previous job.
Understanding how much workers’ compensation pays in New Mexico is essential for both employers and employees. Employers need to ensure they are providing adequate coverage to their employees, while employees should be aware of their rights and the benefits available to them in the event of a workplace injury. By familiarizing themselves with the workers’ compensation system, both parties can work together to ensure a smooth and fair process for all involved.
