Definition 1

Generally, something received in return for something else.

Definition 2

Wages and other financial benefits earned from labor.

Related Terms







Definitions of compensation on the Web:


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

  • (psychiatry) a defense mechanism that conceals your undesirable shortcomings by exaggerating desirable behaviors

  • recompense: the act of compensating for service or loss or injury

  • Compensation is an essay by Ralph Waldo Emerson.

  • In chess, compensation refers to various (typically positional) advantages a player has in exchange for a (typically material) disadvantage. The term normally refers to medium to long-term advantages as opposed to short-term advantages. The terms 'initiative' and 'attack' are generally used to describe a short-term advantage.

  • An addition of specific materials or devices to counteract a known error.

  • Monies paid to the writer for the sale of a screenplay or writing services performed.

  • Refers to adjusting for measurement effects external to the instrument (eg, surface color compensation for atmospheric propagation). Interpretation. Refers to applying the correlation between a sensed physical parameter and a related phenomenon (eg, ocean color interpretation for phyto-plankton concentration).

  • 1. The GATT principle that members who violate GATT rules must compensate other countries by lowering tariffs or making other concessions, or be subject to retaliation. 2. The actual or potential payment by the winners from a change in trade or other policy to the losers, intended to undo the harm to the latter. Actual compensation is rare, but the potential for compensation is used as the basis for most evaluations of the gains from trade.

  • Description: Compensation shall mean payment of damages by a Party who has caused injury to another and must therefore make the other whole. Source: Convention on Biological Diversity CBD

  • All salary, wages and other money payable to a member for duties performed for a participating employer but not including reimbursement for travel or moving expenses.

  • Monetary reimbursement for loss of agricultural resources.

  • Regular payment of salary by an FRS employer to an FRS member for work performed in a covered position, including certain overtime payments. By law, certain fees, bonuses, and other amounts are not considered “compensation” under the FRS. (See s. 121.021(22) and (47), FS, or rule 60S-6.001(16), FAC, for details.) «

  • means payment of a benefit.

  • [new] A term applied to the granting of territory to a state in order to reconcile it to a similar acquisition by a rival. This was a well-established means of regulating the *balance of power (sense 3) in Europe in the eighteenth and nineteenth centuries.

  • An electronic calculation that removes signal overlap which the optical system cannot remove. Fluorescence compensation works for specific pairs of fluorescent parameters; for example, FL1 and FL2.

  • Adjusting an estimated answer up or down to more closely approximate the value.

  • Recompense to employees for lost wages due to delays, injury on the job, etc. Workers' compensation is paid to workers temporarily or permanently disabled by an accident in the workplace. Total compensation may refer to all forms of payment for work done, ie wages plus pensions and fringe benefits.

  • Correction of airborne geophysical data for the changing effect of the aircraft. This process is generally used to correct data in fixed-wing time-domain electromagnetic surveys (where the transmitter is on the aircraft and the receiver is moving), and magnetic surveys (where the sensor is on the aircraft, turning in the earth's magnetic field.

  • Includes direct monetary payments (such as salaries, commissions, and bonuses) and indirect payments (such as paid vacations, health and life insurance benefits, and retirement plans).

  • (see Total Compensation)

  • Receiving an advantage for what may seem a disadvantage. For example, sacrificing a pawn may seem like a disadvantage, but it may be an advantage if it gives increased mobility to one's pieces.

  • A defense mechanism, operating unconsciously, by which one attempts to make up for real or fancied deficiencies. Also a conscious process in which one strives to make up for real or imagined defects of physique, performance skills, or psychological attributes. The two types frequently merge. See also overcompensation.

  • The adjustment of gain and frequency parameters in a closed-loop system to achieve the desired dynamic response and also to insure a stable (non-oscillating) condition.

  • Compensation is the process of transferring ballast, in the form of water, between the variable tanks, and between the variable tanks and sea, to effect the desired trim.

  • Each requirement for compensation of the buyer is limited to the net commodity value that caused the damage. All further requests for compensation of the buyer, which - independently from whatever argument - directly or indirectly in connection with the order, supply or use of our goods are exempted.

  • Counterbalance adverse impacts through cash payment, replacement in kind, provision of substitutes, etc. Compare mitigation.

  • The method of maintaining balance between interests of operating the University within the fiscal budget and attracting, developing, retaining and rewarding high quality staff through wages that are competitive with the prevailing rates for similar employment in the labor market.

  • In legal use, this is the amount an injured party receives to help make reparations after a physical injury or loss, and is often paid by the insurance company of the party causing the damage.

  • Compensation is where you receive recompense for a loss you have suffered as the result of an accident that was not your fault.








Compensation of employees (CE) is a statistical term used in national accounts, Balance of Payments statistics and sometimes in corporate accounts as well. It refer basically to the total gross (pre-tax) wages paid by employers to employees for work done in an accounting period, such as a quarter or a year.


However, in reality, the aggregate includes more than just gross wages, at least in national accounts and balance of payments statistics. The reason is that in these accounts, CE is defined as "the total remuneration, in cash or in kind, payable by an enterprise to an employee in return for work done by the latter during the accounting period". It represents effectively a total labour cost to an employer, paid from the gross revenues or the capital of an enterprise.


Compensation of employees is accounted for on an accrual basis; i.e., it is measured by the value of the remuneration in cash or in kind which an employee becomes entitled to receive from an employer in respect of work done, during the relevant accounting period - whether paid in advance, simultaneously, or in arrears of the work itself. This contrasts with other inputs to production, which are to be valued at the point when they are actually used.


For statistical purposes, the relationship of employer to employee exists, when there is an agreement, formal or informal, between an enterprise and a person, normally entered into voluntarily by both parties, whereby the person works for the enterprise, in return for remuneration in cash or in kind. The remuneration is normally based on either the time spent at work, or some other objective indicator of the amount of work done.


For social accounting purposes, CE is considered as a component of the value of net output or value added (as factor income). The aim is not to measure income actually received by workers, but the value which labour contributes to net output along with other factors of production. The underlying idea is that the value of net output equals the factor incomes that it generates. For this reason, some types of remuneration received by employees are either included or excluded, because they are regarded as either related or unrelated to production or to the value of new output.


In different countries, what is actually included and excluded in CE may differ somewhat. The reason is that the way in which workers are compensated for their labour may be somewhat different in different types of economies. For example, in some countries workers get substantial payments "in kind", in others they don't. Systems of social insurance also differ between countries, and some countries have little social insurance. One has to keep this in mind when comparing CE magnitudes for different countries.










What is the Criminal Injuries Compensation Authority?


The Criminal Injuries Compensation Authority administers the criminal injuries compensation scheme throughout England , Scotland and Wales . We pay compensation to people who have been the victim of a violent crime. We operate the scheme from offices in Glasgow and London .

Since the first scheme was set up in 1964, the Authority, together with the Criminal Injuries Compensation Board which we replaced, has paid more than £3billion in compensation, making it among the largest and most generous of its type in the world. Its aim is to provide victims with material recognition of their pain and suffering and to allow society to express its regret to them.

For most of its history, awards were set according to what the victim would have received in a successful civil action against the offender. Since April 1996, the level of compensation has been determined according to a scale, or tariff, set by Parliament. The scheme, and the 1996 tariff, were revised in 2001. The tariff includes descriptions of over 400 injuries, with each attached to one of 25 levels of compensation between £1,000 and £250,000.

In some situations, when applicants have also suffered financial loss, through loss of earnings or earnings capacity, the cost of medical or other care, or because they were dependent on someone who was murdered, they may apply for additional compensation.


CICA Organisation

Around 450 staff from both the Home Office and the Scottish Executive are employed by CICA in our offices in Glasgow and London to decide on applications for compensation from victims of violent crime. We receive around 65,000 applications for compensation each year and spend nearly £200 million each year in compensation payments.



The Criminal Injuries Compensation Scheme

The Criminal Injuries Compensation Scheme described here applies to all applications received by CICA on, or after, 1 April 2001.

The scheme allows financial awards to be made:

  • to recognise the injuries, physical and mental, caused by a crime of violence

  • in certain circumstances, to compensate for past or future lost earnings or special expenses caused by such a crime

  • for bereavement as a result of a crime of violence, including, in some cases, compensation for the lost earnings of the person who has been killed.

The scheme deals with injuries suffered in Great Britain - that is, England, Scotland and Wales.  Northern Ireland has its own scheme.  The Criminal Injuries Compensation Authority and the body it replaced, the Criminal Injuries Compensation Board, have operated the scheme since the first version was introduced in 1964.  This makes the British system of criminal injuries compensation the oldest established scheme in the world.  It is also the largest, with awards totalling more than £200m annually.

For applications made before 1 April 1996, the scheme was based on the common law.  Applicants' cases were assessed on the same basis as for a personal injury claim in the civil courts.  In 1996 the system was changed with the introduction of a tariff of injuries.  The tariff is a list of fixed compensation payments for each injury.  The 1996 scheme was changed in 2001, but the new scheme continues to use a tariff of injuries. 

The Authority is responsible for operating the scheme, but not for the rules it contains.  The scheme is made by the Home Secretary and approved by Parliament, and both the 1996 and 2001 schemes were made under an Act of Parliament – the Criminal Injuries Compensation Act 1995.






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