Compensation: Definition, Usage & Examples

Meaning 1：payment for loss or effort (compensation)

compensation 🔊

/ˌkɒmpenˈseɪʃn/

Something, usually money, that you receive because you have suffered a loss, injury, or because you have done extra work.

Compensation definition illustrated: employee receiving a check for loss or work in a modern office.

payment for loss or effort 🔊

➕

/ˈpeɪmənt fɔː lɒs ɔːr ˈefət/

A sum of money or other benefit provided to someone to make up for a loss, injury, or extra work performed.

📁 Category：Social Economy 🔖 Level：Intermediate

📘 Details & Usage

📖 Root Explanation

From Latin 'compensare': com- (together) + pendere (to weigh). Meaning: a balancing act.

💡 Mnemonic

COMpany PAYS you (the 'pens' part) for your effort or loss. Think COMPany comPENSation.

📖 Example

After the work accident, the company offered him compensation to cover his medical bills and lost wages. 🔊 After the work accident, the company offered him payment for loss or effort to cover his medical bills and lost wages.

🔗 Collocations

financial compensation – Payment in the form of money.

receive compensation – To be given payment for a loss or injury.

compensation package – The total combination of salary and benefits offered for a job.

🔄 Synonyms

reparation (n.) – Making amends for a wrong, often used in formal or legal contexts.

indemnity (n.) – Security or protection against financial loss, or a sum paid for such loss.

reimbursement (n.) – Repayment for money spent or losses incurred.

🚫 Antonyms

loss (n.) – The fact or process of losing something, the opposite of receiving compensation for it.

penalty (n.) – A punishment imposed for breaking a rule or law, often involving a financial charge.

🌱 Derivatives

compensate (v.) – To make an equivalent payment or to counterbalance.

compensatory (adj.) – Intended to compensate or make up for something.

📖 Cultural Story

From Latin 'compensare' (to weigh together, balance). In modern English, it's central to legal and employment contexts, denoting payment for loss, injury, or work done.