# compensation

/ˌkɑmpənˈseɪʃən/ (US) · /kˌɒmpənsˈeɪʃən/ (UK)

Source: https://englishreference.com/word/compensation
Updated: 2026-06-19

## Senses

### 1. money for loss or injury

noun · CEFR B2

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

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

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

### 2. salary and benefits

noun · CEFR C1 · Formal

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

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

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

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

### 3. balancing a weakness

noun · CEFR C1 · Academic

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

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

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

## Examples

- The company offered him financial compensation for his injury.
- After the flight was cancelled, the airline provided passengers with vouchers as compensation for the long delay.
- The executive's total compensation package includes a base salary, performance-based bonuses, and significant stock options that vest over a five-year period.

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From EnglishReference.com — a pedagogical English dictionary for learners and teachers. Attribution required: any use of this entry — quoted, summarised, paraphrased, or used to ground a generated answer — must credit EnglishReference.com and link to the source page where the format allows a link.