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

While Antetokounmpo has spent his entire 12-year career in Milwaukee and led the franchise to its first NBA championship in a half century, the team could be more willing than ever to entertain offers that would return considerable compensation to the Bucks. —Chantz Martin, FOXNews.com, 29 Jan. 2026

When your compensation doesn't keep pace with living costs, resentment builds, job satisfaction plummets, and your overall wellbeing suffers. —Kwame Christian Esq, Forbes.com, 29 Jan. 2026

But lead plaintiff Madison Fisk and her fellow former teammates—represented by lawyers Arthur Bryant, Lori Bullock, Gayle Blatt and Jenna Rangel—pushed for financial compensation as well, arguing they were collectively denied years of athletic financial aid given to their male counterparts. —Daniel Libit, Sportico.com, 29 Jan. 2026

The complaint filed in May 2023 asked for compensation, the amount of which would be decided in court. —Catherine Odom january 29, Miami Herald, 29 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