Aspect |
Reimbursement |
Compensation |
Definition |
Repayment for expenses incurred by an individual. |
Overall payment or reward for services rendered. |
Nature |
Specifically addresses out-of-pocket expenses. |
Encompasses a broader range, including salaries. |
Scope |
Limited to expenses directly related to the job. |
Covers a wider spectrum of remuneration. |
Purpose |
Addresses fairness in handling business expenses. |
Recognizes the value of an individual’s services. |
Examples |
Travel expenses, supplies, and healthcare costs. |
Salaries, benefits, bonuses, and allowances. |
Reimbursement : Meaning, Working, and Types