Define: Compensation

UK Accounting Glossary

Definition: Compensation


Quick Summary of Compensation


something (such as money) given or received as payment or reparation (as for a service or loss or injury).



What is the dictionary definition of Compensation?

Dictionary Definition


Something, typically money, awarded to someone as a recompense for loss, injury, or suffering.

  1. The act or principle of compensating.
  2. That which constitutes, or is regarded as, an equivalent; that which makes good the lack or variation of something else; that which compensates for loss or privation; amends; remuneration; recompense.
  3. The extinction of debts of which two persons are reciprocally debtors by the credits of which they are reciprocally creditors; the payment of a debt by a credit of equal amount; a set-off.
  4. A recompense or reward for some loss or service.
  5. An equivalent stipulated for in contracts for the sale of real estate, in which it is customary to provide that errors in description, etc., shall not avoid, but shall be the subject of compensation.

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Full Definition of Compensation


A pecuniary remedy that is awarded to an individual who has sustained an injury in order to replace the loss caused by said injury. More than one type of damages (e.g. direct, incidental, and punitive) may be awarded for a single injury.


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Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/compensation/
Modern Language Association (MLA):
Compensation. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. February 25, 2020 https://payrollheaven.com/define/compensation/.
Chicago Manual of Style (CMS):
Compensation. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/compensation/ (accessed: February 25, 2020).
American Psychological Association (APA):
Compensation. PayrollHeaven.com. Retrieved February 25, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/compensation/

Definition Sources


Definitions for Compensation are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • BusinessDictionary.com
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 6th February 2020.