Legal nature of compensation payments in Social Security Law is examined in the article. In particular, attention is paid to the place these benefits take in social security system. It is noted that compensation institute is universal by its nature and inherent in many areas of law. Peculiarities of compensation payments in Social Security Law are determined by the subject of legal regulation of this legal branch, which is briefly outlined in Article 25 of the Universal Declaration of Human Rights. In Social Security Law such concepts as compensation, compensation payments, cash compensation are used. In Labor Law, compensation payments are cash payments determined to reimburse an employee for the expenses connected with performing his/her labor or other duties provided for by law. They include, in particular, compensation for travel expenses in connection with a business trip, for using property belonging to an employee, as well as compensation to employees whose work is connected with constantly travelling or who work in the field or on a rotational method. Civil Law provides for compensation for non-pecuniary damage caused by property damage, for a share in common property, for misuse of an intellectual property object, etc. In the areas of Procedural Law is used compensation payments, connected with conducting civil, administrative and commercial cases.

An attempt to define the concept of “compensation payments” in Social Security Law was made. Compensation payments under Social Security Law are defined by the rules of law cash payments to recipients or providers of social services in order to compensate for the value of paid (provided) goods, works and services, or compensation for failure to receive a proper social service fully or partially.

Compensation payments should be considered to be an independent institute of Social Security Law and as a separate type of social security.

Key words: Compensation payments in Social Security Law, types of compensation payments, social services, social assistance, recipients of social welfare, social services providers.

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