What context can I use each word in?
Learn when and how to use these words with these examples!
compensate
Example
The company will compensate the employees for the overtime they worked. [compensate: verb]
Example
The compensation package includes health insurance and retirement benefits. [compensation: noun]
reimburse
Example
Please keep your receipts so we can reimburse you for the travel expenses. [reimburse: verb]
Example
The company policy allows for reimbursement of up to $50 per day for meals while traveling. [reimbursement: noun]
Good things to know
Which word is more common?
Reimburse is more commonly used than compensate in everyday language, especially in business contexts. Compensate is less common and may be associated with legal or insurance-related matters.
What’s the difference in the tone of formality between compensate and reimburse?
Reimburse is more formal than compensate, which can be used in both formal and informal contexts. Compensate may be associated with legal or insurance-related matters, while reimburse is more commonly used in business contexts.
