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Word

compensation

noun C1
UK /ˌkɒm.pənˈseɪ.ʃən/
US /ˌkɑm.pənˈseɪ.ʃən/

Meanings

noun

money or benefits paid to someone for work they do

compensation: money or benefits paid to someone for work they do
noun

money paid to someone to make up for loss, damage, or harm

compensation: money paid to someone to make up for loss, damage, or harm
noun

something that offsets a disadvantage or makes up for a weakness

compensation: something that offsets a disadvantage or makes up for a weakness

Definition

Compensation is money or another benefit given to make up for work done, loss, or harm.

Compensation refers to something given in return for something else, especially money paid for work or for a loss or injury. It can describe a salary and benefits package, or a payment meant to make up for damage or unfair treatment. In broader use, it can also mean a substitute advantage that offsets a disadvantage.

Examples

  • The role offers competitive compensation, but the workload demands consistent focus and long-term planning.
  • I asked HR to clarify the compensation package, especially how the bonus is calculated and when it is paid.
  • She negotiated compensation that reflected her experience, while keeping the conversation constructive and evidence-based.
  • They accepted the settlement as compensation for the damaged equipment, although the delay still disrupted their schedule.

Common mistake

Learners often say "compensations" as a plural, but "compensation" is usually uncountable unless referring to distinct types or packages.