The objective of study is to describe the condition of compensation and employee’s motivation and the influence of compensation on employee’s motivation at PT New Ratna Motor Semarang. The method of collecting data were interview, distribute questionnaire and literature. The study uses 60 respondents as sample. The analysis technique used is t test one sample, the pearson correlation coefficient and simple regression analysis. The result of simple linear regression analysis value obtained linear regression equation is Y=0,214+0,932x. The analysis shows that the compensation is in the very enough category and the employee’s motivation is in the high category. It means simple linear regression analysis shows level of significant value α is 0,000 it means compensation has positive significant influence to employee’s motivation at PT New Ratna Motor Semarang.