Compensation: meaning, definitions and examples

Used when referring to something (typically money) given to someone to make up for a loss, damage, or injury they have suffered. It often implies a formal or legal context.

• The company offered him compensation for the injuries he sustained at work
• She received compensation after her luggage was lost during the flight

A formal term often used in professional, legal, or business contexts to describe the total compensation package (including salary, bonuses, and benefits) provided to an employee or worker.

• The board discussed the CEO's remuneration package
• They offered a fair remuneration for the consultant's services

A general term used to describe the act of transferring money in exchange for goods, services, or fulfilling obligations. It is the most versatile term and can be used in everyday transactions.

• He made the payment for the car online
• She received a payment for her freelance work

Often implies a positive incentive given in recognition of effort, achievement, or good behavior. It can be used in both formal and informal settings, but tends to have a more positive connotation.

• She received a reward for her outstanding performance at work
• The company gave employees a bonus as a reward for meeting the annual targets

Used in general situations where someone is being given something (usually money) to make up for a loss, damage, or hardship.

• She received compensation for her injuries after the car accident.
• Employees expect compensation for the overtime hours they worked.

Usually used in historical or political contexts, referring to making amends or providing compensation for wrongs or damage, often associated with war or historical injustices.

• The country agreed to pay reparations for the damages caused during the war.
• Reparations were made to the descendants of those who suffered due to the historical atrocity.

Often used in legal and insurance contexts, referring to protection or security against damage or loss, usually through a contractual agreement.

• The insurance policy provides indemnity against any claims of negligence.
• Part of the contract includes indemnity for losses incurred during the project.

Used when referring to the act of setting right a wrong or providing a remedy, often in formal or legal terms.

• The government promised to provide redress for the unfair treatment of its citizens.
• Victims of discrimination sought redress through the court system.

Used when referring to payment or reward given for services, suffering, or loss.

• She received compensation for her injuries from the car accident.
• The company provided financial compensation for the overtime work.

Used to refer to something that neutralizes or counteracts the effect of something else.

• The new regulations are designed to counterbalance the risks of market volatility.
• Weights were added to the scale to serve as a counterbalance.

Usually used when referring to something that diminishes the impact of something else or compensates for it.

• The company planted trees to offset their carbon emissions.
• The tax credit will offset some of the costs of the renovation.

Typically used to describe a state of equilibrium or fairness, often in work-life contexts or in accounting.

• Maintaining a balance between work and personal life is crucial for mental health.
• I need to check my bank balance before making any big purchases.