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.
Reporting thresholds for Form 1099-K (for payment card and third-party network transactions), Form 1099-MISC (for payments not covered by other 1099 forms), and Form 1099-NEC (for nonemployee compensation) have been changed. Kelly Phillips Erb, Forbes.com, 19 July 2025 With great profits came job security, prestige and hefty compensation packages, driving glamorization of STEM fields to students and early-career professionals. Aman Kidwai, MSNBC Newsweek, 18 July 2025 Africa wants climate compensation, not loans The $1.3 trillion pledged by rich nations to the developing world to combat climate change should be in the form of compensation rather than loans, an African ministerial conference argued. Ben Smith, semafor.com, 18 July 2025 An influx of adult claims swamped the system after adverse reactions to flu shots became eligible for compensation in 2005 and serious shoulder problems were added to the injury table in 2017. Patricia Callahan, CNN Money, 18 July 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 22 Jul. 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

Last Updated: - Updated example sentences
Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!