Compensation Meaning: Definition, Examples, and Translations
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compensation
[ˌkɒmpənˈseɪʃən ]
Definitions
at work
Compensation refers to the payment or benefit received by an employee in exchange for their work. It can include salary, bonuses, benefits, and other forms of payment.
Synonyms
payment, remuneration, reward.
Which Synonym Should You Choose?
| Word | Description / Examples |
|---|---|
| compensation |
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.
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| remuneration |
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.
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| payment |
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.
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| reward |
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.
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Examples of usage
- Employees receive compensation for their work in the form of a monthly salary.
- Compensation packages often include health insurance and retirement benefits.
legal
Compensation can also refer to the money or other benefits awarded to someone as a form of reparation for loss, injury, or suffering.
Synonyms
indemnity, redress, reparation.
Which Synonym Should You Choose?
| Word | Description / Examples |
|---|---|
| compensation |
Used in general situations where someone is being given something (usually money) to make up for a loss, damage, or hardship.
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| reparation |
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.
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| indemnity |
Often used in legal and insurance contexts, referring to protection or security against damage or loss, usually through a contractual agreement.
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| redress |
Used when referring to the act of setting right a wrong or providing a remedy, often in formal or legal terms.
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Examples of usage
- The court ordered the company to pay compensation to the victim of the accident.
- He received financial compensation for the damages caused by the faulty product.
psychological
In psychology, compensation can mean a defense mechanism where an individual tries to make up for a perceived weakness by emphasizing a different trait.
Synonyms
balance, counterbalance, offset.
Which Synonym Should You Choose?
| Word | Description / Examples |
|---|---|
| compensation |
Used when referring to payment or reward given for services, suffering, or loss.
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| counterbalance |
Used to refer to something that neutralizes or counteracts the effect of something else.
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| offset |
Usually used when referring to something that diminishes the impact of something else or compensates for it.
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| balance |
Typically used to describe a state of equilibrium or fairness, often in work-life contexts or in accounting.
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Examples of usage
- She compensated for her lack of confidence by being overly assertive in meetings.
- Compensation in this context can lead to a healthier balance of personality traits.
Translations
To see the translation, please select a language from the options available.
Interesting Facts
Economic Perspectives
- Compensation packages often include salaries, bonuses, and benefits to attract and retain employees.
- The concept is critical in labor relations, where disputes over fair pay can lead to strikes or negotiations.
- Employers may use non-monetary forms of compensation, such as flexible working hours or additional vacation days.
Psychology
- In psychology, there is a theory called 'compensatory behavior', where individuals attempt to counterbalance a perceived deficiency.
- People may overcompensate by showing off wealth or success when feeling insecure about their self-worth.
- Understanding compensation helps in therapy, where clients learn healthier coping strategies.
Legal Context
- In legal settings, compensation is often discussed in relation to personal injury claims, where victims receive payouts for their suffering.
- Workers' compensation also exists to provide financial support for employees injured on the job.
- Compensation in contract law focuses on fulfilling obligations when one party fails to meet their duties.
Pop Culture
- Movies often depict characters seeking compensation for lost opportunities, emphasizing personal growth and resilience.
- Reality TV often features contestants discussing the compensation they receive for their participation, highlighting monetary vs. fame motives.
- In literature, compensation themes appear in stories of redemption, where characters seek to make amends for past mistakes.
Origin of 'compensation'
Main points about word origin
- The word originates from the Latin 'compensatio', meaning to weigh together or to balance.
- It evolved into Middle French as 'compensation', which retained the meaning of making up for something.
- In legal terms, the word began to be widely used in the 19th century to denote settlements for damages.
The word 'compensation' originated from the Latin word 'compensatio', which means 'a weighing together' or 'a balancing'. It has been used in the English language since the mid-14th century. The concept of compensation has evolved over time to encompass various forms of payment and reparation, reflecting changes in labor practices, legal systems, and psychological theories.
See also: compensable, compensating, uncompensated.