This research papers examines the impacts compensation management practices (CMP) on employee job satisfaction in the Indian information technology (IT) sector. A structured questionnaire was used to obtain data from 278 IT professional from six leading corporate houses in Bengaluru, and the findings were evaluated using exploratory factor analysis (EFA) and Multiple Regression Analysis. EFA identified four main elements: compensation, incentives, leave rules, and fringe benefits. These account for 62.18% of the overall variation. Regression analysis showed that compensation practices substantially impact job satisfaction (R2 = 0.703, Adjusted R2 = 0.592), with fringe benefits (β = 0.337, p < 0.001) and incentives (β = 0.602, p = 0.003) having the most pronounced effects, followed by leave policies (β = 0.131, p < 0.001) and wage and salary (β = 0.037, p < 0.001). The survey reveals that IT businesses should prioritize on clear incentive programs and extensive fringe benefit offers to increase employee retention and satisfaction. Moreover, formulating employee-centric leave policies can improve staff loyalty. The results offer practical insights on IT companies seeking to establish sustainable HR policies that align with the changing demands of India’s knowledge-based economy.