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Pecuniary Compensation: Definition, Example and Related Terms

What is Pecuniary Compensation ?

Pecuniary Compensation is a fancy way of talking about money that you get for a specific reason. For example, if you worked for 5 hours and you got $50, that $50 is your Pecuniary Compensation - it's money you're given as a payment. It's different from getting paid through services or receiving goods - it's all about cold, hard cash.

Here's a fun thing to think about: the word 'pecuniary' comes from the Latin 'pecunia', which means money.


  • Scenario Description
    Work Hours You worked for 8 hours at a rate of $15/hour. Your pecuniary compensation is $120.
    Movie Acting A film star gets paid $1 million for their role in a movie. The $1 million is their pecuniary compensation.
    Breach of Contract A business didn't deliver on a deal. According to the contract, they need to pay the other party $5000. That $5000 is the pecuniary compensation for breaking the contract.
    Writing a Book An author is paid $10,000 as an advance for their new book. The $10,000 is their pecuniary compensation for writing the book.

Related terms