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noun B2 Upper-Intermediate Common

compensation

kom-puhn-SAY-shuhn

Compensation (noun) means Money or another benefit given to make up for a loss, injury, or inconvenience. Example: “He received compensation after the accident at work.”

noun
1
Money or another benefit given to make up for a loss, injury, or inconvenience.
"He received compensation after the accident at work."
"The settlement included compensation for lost wages."
2
Pay or reward given for work performed.
"Her compensation package includes a bonus and health insurance."

How to use compensation

Learner’s notes

In plain EnglishA payment or benefit meant to balance out a loss, or simply someone's pay and benefits.

Common pairings
financial compensation compensation package seek compensation

Word forms

compensations plural

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Test yourself on “compensation” A quick quiz — meaning, synonyms & usage

Fill the gap

Can you complete this real example?

He received _____ after the accident at work.

Etymology

From Latin compensatio, built from compensare, "to balance one thing against another."

Origin: Latin

Related words

Rhymes for compensation

See all rhymes for compensation →

Frequently asked questions

What does “compensation” mean?

The word “compensation” means money or another benefit given to make up for a loss, injury, or inconvenience. In plain terms, a payment or benefit meant to balance out a loss, or simply someone's pay and benefits.

How do you pronounce “compensation”?

“Compensation” is pronounced kom-puhn-SAY-shuhn (/ˌkɑm.pənˈseɪ.ʃən/ in IPA).

How do you use “compensation” in a sentence?

Here is “compensation” used in a sentence: “He received compensation after the accident at work.”

What is another word for “compensation”?

Words with a similar meaning to “compensation” include amends, acquittal, assyth, bote, indemnification and indemnity.

What is the opposite of “compensation”?

The opposite of “compensation” — its antonyms — are noncompensation and penalty.

What part of speech is “compensation”?

“Compensation” is a noun.

Where does the word “compensation” come from?

The word “compensation” comes from Latin. From Latin compensatio, built from compensare, "to balance one thing against another.".

Is “compensation” a common word?

“Compensation” is a fairly common word in modern English, usually learned at around the B2 level.

What is the difference between "compensation" and "salary"?

"Salary" is the fixed, regular pay someone receives for a job, while "compensation" is a broader term for total reward, including salary, bonuses, and benefits. In another sense, compensation can also mean money paid to make up for a loss or injury.

What is the difference between "compensation" and "reimbursement"?

Reimbursement means paying someone back for a specific cost they have already paid, such as travel expenses. Compensation is broader and often means money given to make up for a loss, injury, or inconvenience, not just to repay an exact amount.

What is the difference between "compensation" and "damages"?

"Damages" is the legal term for a sum a court orders one party to pay another for harm or loss. "Compensation" is the wider everyday word for any money or benefit given to make up for a loss, which may or may not involve a court.

Can "compensation" mean both an injury payout and work pay?

Yes. In one sense, compensation is money given to make up for a loss, injury, or inconvenience, as in a compensation claim. In another, it means the pay or reward given for work performed, as in an employee's compensation package.

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