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This study examines the antecedents and consequences of compensation and benefit satisfaction in Indian manufacturing firms during the COVID-19. Responses to the questionnaire were obtained from 164 middle-level managers and analyzed applying partial least squares structural equation modeling. Managers having stronger personal values and working in redefined human resource development climate perceive lower compensation and benefit discrepancy. Lower compensation and benefit discrepancy partially enhances compensation and benefit satisfaction through justice perception. Interestingly, during pandemic managers refrain from pay comparison and perceive lower compensation offerings as fair. Under high psychological capital, compensation and benefit discrepancy increases compensation and benefit satisfaction, leading to high engagement and happiness. The high level of engagement via job crafting partially improves performance and employee happiness. During uncertainty, managers less engage in compensation comparison and expect proper communication on how compensation and benefits are restructured that can further compensation and benefit satisfaction and shape employees’ attitudes and behaviors.