What context can I use each word in?
Learn when and how to use these words with these examples!
reimbursement
Example
The company will provide reimbursement for all travel expenses. [reimbursement: noun]
Example
I will reimburse you for the cost of the hotel room. [reimburse: verb]
compensation
Example
The company offered him a generous compensation package. [compensation: noun]
Example
The insurance company compensated her for the damage to her car. [compensated: past tense verb]
Good things to know
Which word is more common?
Compensation is more commonly used than reimbursement in everyday language. Compensation is versatile and covers a wide range of contexts, while reimbursement is less common and refers to a specific type of financial transaction.
What’s the difference in the tone of formality between reimbursement and compensation?
While reimbursement is typically associated with a more formal and bureaucratic tone, compensation is more versatile and can be employed in various formality levels, allowing it to be used in both formal and informal contexts.
