Sun. Jul 25th, 2021

HSSE WORLD

Health, Safety, Security and Environment

Compensation Costs

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Definition – What do Compensation Costs mean?

The compensation costs are the expenditures an employer has to pay in benefits to an employee while the employee is no longer able to work (whether temporarily or permanently) due to an injury sustained while on the job.

HSSE WORLD explains Compensation Costs

An employee injured on the job has to be compensated for lost earnings due to missed workdays. This is usually paid in employee benefits, medical expenses, or paid leave, depending on the nature of the agreement between the employer and the employee.

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