Definition - What does Compensation Costs mean?
When an employer has to pay a for the expenditure of the employee through the benefits during the off work days of the employee due to some injury while carrying out a job for the employer. Then this compensation is called compensation cost.
Safeopedia explains Compensation Costs
When an employee gets injured while carrying out a job for the employer, and is unable to do work, then the employer will have to pay the amployee for the days that are taken off by him. This is usually paid from the benifits that are given to the employee. some times in the form of medical cover, some time paid leaves. It depends upon the nature of agrement between the employer and the employee.