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Capital City
Santa Fe
Timezone
MST
(
GMT-7
)
Paid Leave
Sick Leave
Income Tax
1.7% - 5.9%
Employer Tax
2.7% - 6.4%
Capital City
Santa Fe
Timezone
MST
(
GMT-7
)
Paid Leave
Sick Leave
Income Tax
1.7% - 5.9%
Employer Tax
2.7% - 6.4%
New Mexico's economy is supported by various sectors, including oil and gas, tourism, and a growing film industry.
The state has seen significant growth in renewable energy and technology sectors, attracting businesses and talent nationwide.
New Mexico mandates paid sick leave under the Healthy Workplaces Act, requiring employers to provide earned sick leave to employees.
With a rich cultural heritage, New Mexico offers a unique environment that values diversity, which can be advantageous for businesses focusing on inclusive practices.
New Mexico has specific employment and labor laws governing working hours, designed to protect employees’ rights and ensure fair compensation. Whether you’re hiring local employees or working with an Employer of Record (EOR), it's essential to understand the state's regulations around working hours to ensure compliance.
1. Standard Workweek and Overtime
2. Meal and Rest Breaks
As of 2024, the minimum wage in New Mexico is $12.00 per hour.
Non-exempt employees in New Mexico are entitled to overtime pay at 1.5 times their regular hourly wage for any hours worked beyond 40 in a workweek. Certain employees, such as those in executive, administrative, or professional roles, may be exempt from these overtime provisions under specific conditions.
Payroll taxes in New Mexico are deductions employers must take from employees’ wages and remit to the state. These taxes fund various state programs and services, including unemployment benefits and disability insurance. Examples of payroll taxes include:
Employers in New Mexico must pay employees at least twice a month. Payments for work performed from the 1st to the 15th are due by the 25th, and payments for work performed from the 16th to the end of the month are due by the 10th of the following month.
Employers are responsible for state unemployment insurance and workers' compensation fees.
Employer payroll contributions are generally estimated at an additional 0.33% to 6.4% on top of the employee salary in New Mexico.
Employee tax contributions are generally estimated at 1.7% to 5.9% of employee salary in New Mexico.
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Employers in New Mexico must comply with both state and federal benefit regulations. Learn more about employee benefits.
Competitive benefits are essential for attracting and retaining top talent in New Mexico. Offering the right package helps employees feel valued and motivated. Our benefits experts understand the local labor market's trends, requirements, and expectations, ensuring your employees feel valued and supported. Common benefits in our New Mexico packages include:
Under the Healthy Workplaces Act, employees accrue one hour of paid sick leave for every 30 hours worked, up to 64 hours annually.
Employees can take up to two hours of paid leave to vote in elections.
Employers must provide unpaid leave for jury duty, ensuring job protection during the period.
Employees serving in the armed forces are entitled to unpaid leave and reinstatement upon return.
Employees may take up to 14 days of unpaid leave annually to address issues related to domestic violence.
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FAQS
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Employers must use the New Mexico Taxpayer Access Point (TAP) to remit taxes online.
Yes, the 2024 state minimum wage is $12.00 per hour.
No, but the New Mexico Work and Save Act provides a voluntary state retirement program.
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