diff --git a/dist/index.js b/dist/index.js
index 1133f83..6f6dea7 100644
--- a/dist/index.js
+++ b/dist/index.js
@@ -139699,7 +139699,7 @@ function uncompress(dest, tarFile, strip) {
 function compress(dir, outputFile) {
     return __awaiter(this, void 0, void 0, function* () {
         return new Promise((resolve, reject) => {
-            create({ z: true }, [dir])
+            create({ z: true, C: external_path_.dirname(dir) }, [dir])
                 .pipe(external_fs_.createWriteStream(outputFile))
                 .on("close", () => resolve())
                 .on("error", reject);
diff --git a/index.ts b/index.ts
index 81a67cc..b2d7d64 100644
--- a/index.ts
+++ b/index.ts
@@ -273,7 +273,7 @@ async function uncompress(
 async function compress(dir: string, outputFile: string): Promise<void> {
   return new Promise((resolve, reject) => {
     tar
-      .c({ z: true }, [dir])
+      .c({ z: true, C: path.dirname(dir) }, [dir])
       .pipe(fs.createWriteStream(outputFile))
       .on("close", () => resolve())
       .on("error", reject);