'compensation' originates from Latin, specifically the word 'compensatio,' where 'com-' meant 'together' and 'pensare' meant 'to weigh.'

'compensatio' transformed into the Old French word 'compensacion,' and eventually became the modern English word 'compensation' through Middle English.

Initially, it meant 'to weigh together or balance,' but over time it evolved into its current meaning of 'reimbursement or payment for loss.'