Memorandums

On June 12, 2026, the State Personnel Board approved a 3 percent (3%) upward increase of the salary structure to take effect in the first pay period in FY27, pursuant to the State Personal Act and 1.7.4.11 NMAC. This adjustment is a market competitive approach intended to maintain alignment with current labor market conditions to support recruitment and retention. Frequent review of pay bands for market competitiveness is a national best practice. Current economic indicators including inflation and cost-of-living adjustments inform the need to adjust the structure allowing for future pay increases.

The updated salary structure, Salary Schedules | NM SPO, is attached for your reference.

No classified employee experienced a reduction in pay due to this adjustment of the pay bands. Most employees will only notice a 1% increase to their base salary due to the legislative increase that was effective the beginning of FY27. The only exception, pursuant to SPO board rule cited above, is to the 629 classified employees and probationers who fell below the minimum of the adjusted pay bands. All of these classified employees were brought to the base of the adjusted pay band. Employees who had not met probation by July 4, 2026, will be brought to the base of their pay band once they meet probation. This adjustment ensures that all classified employees are paid at the minimum of the pay band. All adjustments were processed automatically in SHARE. It is also important to note, that because of increasing the salary structure, the maximum of an employee’s pay grade will increase, providing greater long-term earning potential.

The aging of the salary structure by 3% affected 37 agencies and 629 employees for a grand total of $866,548 spread across agencies. Our office has contacted the affected agencies and provided guidance about this process.

The upward increase of the salary structure is a different compensation action from the 1% legislative increase. Due to the timing of the legislative increase in the SHARE system, the sequencing of the application was, first, the legislative increase was applied, and then the increase was calculated and applied to bring employees to the minimum of the new pay band.

The updated pay rate reflecting both the 1% legislative increase and any cost increase associated with the upward adjustment of the salary schedules has been processed and is reflected in employee’s July 24, 2026 paycheck. If an employee has a question about their pay, please direct them to their agency HR as they would have the most up-to-date information for the employee.