to compensate / to temper
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to compensate
To financially compensate or pay someone for work performed, expenses incurred, or damage suffered.
Die Überstunden werden am Ende des Monats gesondert vergütet.
The overtime will be compensated separately at the end of the month.
'Vergüten' derives from the adjective 'gut' (good). The inseparable prefix 'ver-' indicates a change of state here: you make sure that something is made 'good' for someone, usually through payment.
Der entstandene Schaden wurde ihm vollständig vergütet.
He was fully compensated for the damage that occurred.
You can recognize the meaning of the word from the context. If it is about money, work, or costs, the financial meaning is intended. If it is about metals, hardness, or industrial processes, the technical meaning is intended.
Die Reisekosten werden Ihnen nach der Dienstreise vergütet.
Your travel expenses will be reimbursed after the business trip.
In the financial meaning, 'vergüten' (to compensate) is a formal word that is often used in contracts, business, or administrative language.
Laut Arbeitsvertrag wird jede Überstunde extra vergütet.
According to the employment contract, every hour of overtime is compensated separately.
'Überstunden' (overtime), 'Reisekosten' (travel expenses), an 'Aufwand' (effort/expense), or a 'Schaden' (damage/loss) are often 'vergütet' (compensated). So it is usually about compensation for a service or a loss.
Der zusätzliche Aufwand für das Projekt wurde den Mitarbeitern fair vergütet.
The additional effort for the project was fairly compensated for the employees.
to pay
'bezahlen' and 'vergüten' both mean that someone receives money or that money is given. 'bezahlen' is more general and fits prices, bills, goods, and services. 'vergüten' is used more when someone is financially compensated for work, effort, or damage. The words can be confused because both have to do with money. The difference is: 'bezahlen' often focuses on the price or the bill, while 'vergüten' focuses on the service performed or the compensation.
Die Firma vergütet den Mitarbeitern die Fahrtkosten.
The company reimburses employees for their travel expenses.
Die Miete muss jeden Monat pünktlich bezahlt werden.
The rent must be paid on time every month.