Simple Definition of compensation

from our Learner's Dictionary

compensation

noun

plural compensations
1
a
: something that is done or given to make up for damage, trouble, etc.
The court awarded the victims millions of dollars in compensation.
She offered to pay for lunch as compensation for keeping me waiting.
b
: something good that acts as a balance against something bad or undesirable
Moving to the coast had some drawbacks, but there were also compensations.
2
US : payment given for doing a job
annual compensation
executive compensation

Cite this Entry

“Compensation.” Merriam-Webster.com Simple Definition, Merriam-Webster, https://www.merriam-webster.com/simple/compensation. Accessed 26 Jul. 2026.

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