compensation

/ˌkɒmpənˈseɪʃən/
nounIntermediate payment or reward for work or loss
💼Business
general

Money or benefits given to someone in return for work or services rendered.

She received compensation for her consulting services.

She was paid for her consulting work.

💡

Often includes salary, bonuses, or other benefits.

⚖️Law
legal

Financial or other reparation given to someone who has suffered loss or injury.

The court awarded compensation to the victim for medical expenses.

The victim was given money to cover medical costs.

💡

Common in personal injury or employment law cases.

💰Finance
Finance

A form of payment or benefit given to employees as part of their employment contract.

The compensation package included stock options and a signing bonus.

The employee's payment included shares and an extra payment for joining.

💡

May include salary, bonuses, benefits, and other perks.

Collocations

compensation packagea set of payments and benefits given to an employeecompensation claima request for payment due to loss or injurycompensation funda pool of money set aside for payments to victims

Related Phrases

compensatory damagesphrase
money awarded to compensate for harm
compensation structurephrase
the way employee payments are organized

💡Pro Tip

Legal vs. Business Use

In legal contexts, compensation often refers to payments for harm, while in business, it refers to employee payments.

Gold Rule

Context Matters

Always consider the context when using 'compensation'—it can mean different things in legal, business, or general settings.

📖Word Origin

From Latin 'compensatio', meaning 'a balancing or making up for', from 'compensare' (to balance).

📝Usage Notes

In legal contexts, compensation often refers to financial reparation for harm. In business, it refers to employee payments.

Word Breakdown

com-
together
prefix
+
-pens-
to weigh
root
+
-ation
the act of
suffix
English Dictionary