compensation

noun

com·​pen·​sa·​tion ˌkäm-pən-ˈsā-shən 

-ˌpen-

1

a

: the act of compensating : the state of being compensated

b

: correction of an organic defect or loss by hypertrophy or by increased functioning of another organ or unimpaired parts of the same organ

c

: a psychological mechanism by which feelings of inferiority, frustration, or failure in one field are counterbalanced by achievement in another

2

a(1)

: something that constitutes an equivalent or recompense

Age has its compensations.

Moving to the coast had some drawbacks, but there were also compensations.

(2)

: payment to unemployed or injured workers or their dependents

receiving compensation from his employer

b

: payment, remuneration

working without compensation

compensational

ˌkäm-pən-ˈsā-sh(ə-)nəl 

-ˌpen-

adjective

Synonyms of compensation

• reparation
• damages

Examples of compensation in a Sentence

The court awarded the victims millions of dollars in compensation.

She offered to pay for lunch as compensation for keeping me waiting.

Moving to the coast had some drawbacks, but there were also compensations.

Recent Examples on the Web

And outside a few rare exceptions, it’s done without compensation. —Briah Lumpkins, Charlotte Observer, 12 Jan. 2026

Beyond salaries, the overall compensation for state employees includes overtime and pensions as part of the costs in the $27 billion annual budget. —Christopher Keating, Hartford Courant, 11 Jan. 2026

Court rulings have favored athletes of late, winning them not just millions in compensation but the ability to play immediately after transferring rather than have to sit out a year as once was the case. —Andrew Destin, Arkansas Online, 10 Jan. 2026

Both companies have filed arbitration cases against Venezuela seeking billions of dollars in compensation for assets that were expropriated by the government. —Pia Singh, CNBC, 10 Jan. 2026

Word History

Etymology

Middle English compensacioun, borrowed from Latin compensātiōn-, compensātiō "weighing, balancing, balancing of items in an account," from compensāre "to balance, make good, compensate" + -tiōn-, -tiō, suffix of verbal action

First Known Use

14th century, in the meaning defined at sense 1a

Phrases Containing compensation

• seek compensation
• unemployment compensation
• workmen's compensation insurance

Rhymes for compensation

• abdication
• aberration
• abjuration
• abnegation
• abrogation
• acceptation
• acclamation
• acclimation
• accusation
• activation
• actuation
• acylation

Kids Definition

compensation

noun

com·​pen·​sa·​tion ˌkäm-pən-ˈsā-shən 

1

: the act of compensating : the state of being compensated

2

a

: something that compensates

especially : payment to an unemployed or injured worker

b

: payment in the form of salary or wages

Medical Definition

compensation

noun

com·​pen·​sa·​tion ˌkäm-pən-ˈsā-shən, -ˌpen- 

1

: correction of an organic defect by excessive development or by increased functioning of another organ or unimpaired parts of the same organ

cardiac compensation

see decompensation

2

: a psychological mechanism by which feelings of inferiority, frustration, or failure in one field are counterbalanced by achievement in another

Legal Definition

compensation

noun

com·​pen·​sa·​tion ˌkäm-pən-ˈsā-shən 

1

: the act of compensating

2

in the civil law of Louisiana : the ending of mutual obligations between two people for money or quantities of fungible things usually by operation of law but sometimes by an agreement

3

: something that makes up for a loss

received compensation for the breach of contract

specifically : payment to unemployed or injured workers or their dependents see also unemployment compensation, workers' compensation

4

: payment for a thing of value tendered or a service rendered

the Senators and Representatives shall receive compensation for their services

—U.S. Constitution art. I