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.
Example(s)
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.