Satisfaction of employees will increase productivity and increase outputs for the organisations. The aim of the study was to investigate the effectiveness of compensation structure on job satisfaction among employees in retail sectors in Malaysian context. There is paucity on research investigating specifically the relationship between compensation, benefits and job satisfaction within the retail sectors nationally. The results exhibited three types of compensation that have a significant relationship with the employees’ job satisfaction. Retail sectors will gain an insight from the current study on how to improve job satisfaction through compensation. The positive relationship between compensation structure and job satisfaction should not be overlooked. The results indicated a positive and significant relationship between compensation structure and job satisfaction. These results warrant caution to retail sectors to pay much attention on compensation structure. There is an expectation from the employees that they will be adequately compensated for their efforts.