What does "compensation" mean?

1. (money for loss or injury) money that you receive because you were injured or something you own was damaged. 2. (salary and benefits) the total amount of money and other benefits an employee receives for their work. 3. (balancing a weakness) something that makes a bad situation feel better or balances out a problem.

How do you use "compensation"?

Often used with the verb 'claim' or 'award'. Common in human resources and corporate contexts. Often used in psychological or biological contexts.

compensation

US //ˌkɑmpənˈseɪʃən// UK //kˌɒmpənsˈeɪʃən// com·pen·sa·tion

1 money for loss or injury (n.)
B2 Upper Intermediate Law

money that you receive because you were injured or something you own was damaged.

something, typically money, awarded to someone as a recompense for loss, injury, or suffering.

Example

The airline offered the passengers financial compensation for the long delay.

Example

The court ordered the company to pay substantial compensation to the workers who had been exposed to hazardous chemicals without proper safety equipment.

Usage

Often used with the verb 'claim' or 'award'.
- restitution
- recompense
- indemnity
2 salary and benefits (n.)
C1 Advanced Formal

the total amount of money and other benefits an employee receives for their work.

the total amount of the monetary and non-monetary pay provided to an employee by an employer.

Example

The job offer includes a competitive salary and a generous compensation package.

Example

The executive's total compensation includes a base salary, annual bonuses, and stock options based on the firm's performance.

Usage

Common in human resources and corporate contexts.

Teacher's tip

In American English, this is the standard formal term for a 'pay package'.

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3 balancing a weakness (n.)
C1 Advanced Academic

something that makes a bad situation feel better or balances out a problem.

the process of concealing or offsetting a psychological or physical defect by developing another trait.

Example

His great sense of humor was a compensation for his lack of confidence.

Example

The patient's brain showed remarkable compensation, with the healthy hemisphere taking over functions previously managed by the damaged area.

Usage

Often used in psychological or biological contexts.
- offset
- counterbalance

Origin

From Middle English compensacioun, from Old French compensacion, from Latin compensātiōnem, accusative singular of compensātiō. Equivalent to compensate + -ion.