Meaning & Definition of word "Compensation"

Compensation

/ˌkɒmpənˈseɪʃən/

1. Something, typically money, awarded to someone in recognition of loss, suffering, or injury.
- Example: The company offered her a generous compensation package for the hours she worked overtime.
2. The act of making amends or reparation for a loss or injury.
- Example: He received compensation for the damage to his car after the accident.
3. A payment made to someone in exchange for their work or services.
- Example: The compensation for this job includes a base salary as well as bonuses.
4. A counterbalancing equivalent; offset.
- Example: The compensation of good work with fair pay encourages employee satisfaction.
5. The process of compensating someone or something.
- Example: Compensation for the delay was handled through a discount on future purchases.

From Latin 'compensatio', meaning 'a weighing together'.

compensation package:

A set of benefits that employees receive from their employer.

compensatory damages:

Monetary award to a plaintiff to offset the losses suffered.

fair compensation:

A payment that is considered reasonable and just for the services or goods provided.

reimburse:

To pay back or make restitution for money spent or losses incurred.

remuneration:

Payment for work done or services provided.

indemnity:

Security or protection against a loss or other financial burden.

Meaning: Payback

Example Sentence: He’s only in it for the payback.

Meaning: Comp

Example Sentence: The meal was a comp due to the service issues.