What context can I use each word in?
Learn when and how to use these words with these examples!
salary
Example
She earns a good salary as a software engineer. [salary: noun]
Example
He was offered a higher salary at the new company. [salary: adjective]
compensation
Example
The company offers competitive compensation packages to attract top talent. [compensation: noun]
Example
The employee received compensation for the damages caused by the company's negligence. [compensation: noun]
Good things to know
Which word is more common?
Salary is more commonly used than compensation in everyday language. Salary is a familiar term that most people understand, while compensation is more often used in formal or professional contexts.
What’s the difference in the tone of formality between salary and compensation?
Salary is generally considered more formal than compensation, which can be used in both formal and informal contexts. However, both terms can be used in a variety of settings depending on the context and audience.
