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Human Resources vocabulary · Pay, Payroll & Benefits

Compensation

Meaning in human resources, with examples

/ˌkɑːmpenˈseɪʃən/nounCommon term

In human resources, compensation means: Everything an employee receives for their work, including salary, bonuses and benefits. It can also mean money paid to someone for a loss or injury.

In Turkish: ücret ve yan haklar, toplam ücret paketi, ücretlendirme

How it is used

Mainly American HR language: compensation package, total compensation, comp and ben. British HR often prefers reward or pay and benefits. The context shows whether it means pay or a legal payment.

Example sentences

  1. Total compensation for the role, including bonus, is around $120,000.

  2. She works in compensation and benefits, so she helps set the salary bands.

Common collocations

  • compensation package
  • total compensation
  • compensation and benefits
  • executive compensation
  • salaryA fixed amount of money that an employee is paid for their work, agreed as a yearly figure and usually paid every month.
  • benefitsThings an employee gets from their job in addition to pay, such as health insurance, a pension, meal allowances or extra days off.
  • bonusAn extra payment on top of normal pay, often given for good results, at the end of the year or when someone joins a company.
  • salary bandThe lowest and highest salary a company will pay for a particular job or level, used to keep pay fair and consistent.

This word in other fields

The same English word can have a different meaning in another field:

More terms: Pay, Payroll & Benefits

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