compensation

noun

com·​pen·​sa·​tion ˌkäm-pən-ˈsā-shən How to pronounce compensation (audio)
-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-shnəl How to pronounce compensation (audio)
-shə-nᵊl
-ˌpen-
adjective

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
Examples are automatically compiled from online sources to show current usage. Read More Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback.
In 2023, Jordan’s first full year as CEO, his total compensation was $9.3 million. Dan Reed, Forbes.com, 25 June 2025 So far this fiscal year, the department has distributed over $120 billion in compensation and pension benefits to veterans and their families. Aliss Higham, MSNBC Newsweek, 25 June 2025 Until now, one of the most financially rewarding paths was quantitative research at hedge funds: All-in compensation for PhDs fresh out of school can climb to $1 million–plus in these roles. Alexandra Sternlicht, Fortune, 25 June 2025 At the annual meeting, shareholders approved the company's executive compensation plan and reelected all 13 board members. Kif Leswing, CNBC, 25 June 2025 See All Example Sentences for compensation

Word History

Etymology

see compensate

First Known Use

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

Time Traveler
The first known use of compensation was in the 14th century

Cite this Entry

“Compensation.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/compensation. Accessed 30 Jun. 2025.

Kids Definition

compensation

noun
com·​pen·​sa·​tion ˌkäm-pən-ˈsā-shən How to pronounce compensation (audio)
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- How to pronounce compensation (audio)
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 How to pronounce compensation (audio)
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 servicesU.S. Constitution art. I

More from Merriam-Webster on compensation

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