diff --git a/README.md b/README.md
index 618dd6a..9ddae5d 100644
--- a/README.md
+++ b/README.md
@@ -13,7 +13,7 @@ steps:
   - label: ':nodejs: Install dependencies'
     command: npm ci
     plugins:
-      - cache#v1.1.0:
+      - cache#v1.3.0:
           manifest: package-lock.json
           path: node_modules
           restore: file
@@ -131,7 +131,7 @@ steps:
   - label: ':nodejs: Install dependencies'
     command: npm ci
     plugins:
-      - cache#v1.1.0:
+      - cache#v1.3.0:
           manifest: package-lock.json
           path: node_modules
           restore: pipeline
@@ -142,7 +142,7 @@ steps:
   - label: ':test_tube: Run tests'
     command: npm test # does not save cache, not necessary
     plugins:
-      - cache#v1.1.0:
+      - cache#v1.3.0:
           manifest: package-lock.json
           path: node_modules
           restore: file
@@ -151,7 +151,7 @@ steps:
     if: build.branch == "master"
     command: npm run deploy
     plugins:
-      - cache#v1.1.0:
+      - cache#v1.3.0:
           manifest: package-lock.json
           path: node_modules
           restore: file
diff --git a/hooks/post-checkout b/hooks/post-checkout
index 7a88bec..a98fcfb 100755
--- a/hooks/post-checkout
+++ b/hooks/post-checkout
@@ -1,7 +1,7 @@
 #!/bin/bash
 set -euo pipefail
 
-DIR="$(cd "$( dirname "${BASH_SOURCE[0]}" )" && pwd)"
+DIR="$(cd "$(dirname "${BASH_SOURCE[0]}")" && pwd)"
 
 # shellcheck source=lib/shared.bash
 . "${DIR}/../lib/shared.bash"
@@ -10,7 +10,7 @@ DIR="$(cd "$( dirname "${BASH_SOURCE[0]}" )" && pwd)"
 
 RESTORE_PATH=$(plugin_read_config PATH)
 
-if [ -z "${RESTORE_PATH}" ] ; then
+if [ -z "${RESTORE_PATH}" ]; then
   echo "+++ 🚨 Missing path option in the cache plugin to restore"
   exit 1
 fi
diff --git a/lib/compression.bash b/lib/compression.bash
index 824007c..227a33d 100644
--- a/lib/compression.bash
+++ b/lib/compression.bash
@@ -1,6 +1,6 @@
 #!/bin/bash
 
-DIR="$(cd "$( dirname "${BASH_SOURCE[0]}" )" && pwd)"
+DIR="$(cd "$(dirname "${BASH_SOURCE[0]}")" && pwd)"
 
 # shellcheck source=lib/plugin.bash
 . "${DIR}/plugin.bash"
@@ -35,17 +35,34 @@ compress() {
   echo "Compressing ${COMPRESSED_FILE} with ${COMPRESSION}..."
 
   if [ "${COMPRESSION}" = 'tgz' ]; then
-    tar czf "${FILE}" "${COMPRESSED_FILE}"
+    TAR_OPTS='cz'
+    if is_absolute_path "${COMPRESSED_FILE}"; then
+      TAR_OPTS="${TAR_OPTS}"P
+    fi
+
+    tar "${TAR_OPTS}"f "${FILE}" "${COMPRESSED_FILE}"
   elif [ "${COMPRESSION}" = 'zip' ]; then
-    # because ZIP complains if the file does not end with .zip
-    zip -r "${FILE}.zip" "${COMPRESSED_FILE}"
-    mv "${FILE}.zip" "${FILE}"
+    if is_absolute_path "${COMPRESSED_FILE}"; then
+      local COMPRESS_DIR
+      COMPRESS_DIR="$(dirname "${COMPRESSED_FILE}")"
+      ( # subshell to avoid changing the working directory
+        # shellcheck disable=SC2164 # we will exit anyway
+        cd "${COMPRESS_DIR}"
+        # because ZIP complains if the file does not end with .zip
+        zip -r "${FILE}.zip" "${COMPRESSED_FILE}"
+        mv "${FILE}.zip" "${FILE}"
+      )
+    else
+      # because ZIP complains if the file does not end with .zip
+      zip -r "${FILE}.zip" "${COMPRESSED_FILE}"
+      mv "${FILE}.zip" "${FILE}"
+    fi
   fi
 }
 
 uncompress() {
   local FILE="$1"
-  local _RESTORE_PATH="$2" # pretty sure this is not necessary
+  local RESTORE_PATH="$2"
 
   local COMPRESSION=''
   COMPRESSION="$(plugin_read_config COMPRESSION 'none')"
@@ -53,10 +70,33 @@ uncompress() {
   echo "Cache is compressed, uncompressing with ${COMPRESSION}..."
 
   if [ "${COMPRESSION}" = 'tgz' ]; then
-    tar xzf "${FILE}"
+    TAR_OPTS='xz'
+    if is_absolute_path "${RESTORE_PATH}"; then
+      TAR_OPTS="${TAR_OPTS}"P
+    fi
+
+    tar "${TAR_OPTS}"f "${FILE}" "${RESTORE_PATH}"
   elif [ "${COMPRESSION}" = 'zip' ]; then
-    # because ZIP complains if the file does not end with .zip
-    mv "${FILE}" "${FILE}.zip"
-    unzip -o "${FILE}.zip"
+    if is_absolute_path "${RESTORE_PATH}"; then
+      local RESTORE_DIR
+      RESTORE_DIR="$(dirname "${RESTORE_PATH}")"
+      ( # subshell to avoid changing the working directory
+        mkdir -p "${RESTORE_DIR}"
+        # shellcheck disable=SC2164 # we will exit anyway
+        cd "${RESTORE_DIR}"
+        mv "${FILE}" "${RESTORE_DIR}/compressed.zip"
+        unzip -o "compressed.zip"
+        rm "compressed.zip"
+      )
+    else
+      # because ZIP complains if the file does not end with .zip
+      mv "${FILE}" "${FILE}.zip"
+      unzip -o "${FILE}.zip"
+    fi
   fi
 }
+
+is_absolute_path() {
+  local FILEPATH="${1}"
+  [ "${FILEPATH:0:1}" = "/" ]
+}
diff --git a/tests/post-checkout-tgz.bats b/tests/post-checkout-tgz.bats
index d51f37c..7de9537 100644
--- a/tests/post-checkout-tgz.bats
+++ b/tests/post-checkout-tgz.bats
@@ -24,7 +24,8 @@ setup() {
 
   # stub is the same for all tests
   stub tar \
-    "xzf \* \* : echo uncompressed \$2 into \$3"
+    "\* \* \* : echo uncompressed \$2 into \$3 with options \$1"
+
 }
 
 teardown() {
@@ -45,6 +46,7 @@ teardown() {
   assert_success
   assert_output --partial 'Cache hit at file level'
   assert_output --partial 'Cache is compressed, uncompressing with tgz'
+  assert_output --partial "with options xzf"
 
   unstub cache_dummy
 }
@@ -155,3 +157,21 @@ teardown() {
 
   unstub cache_dummy
 }
+
+@test 'Existing file-based restore to absolute path' {
+  export BUILDKITE_PLUGIN_CACHE_RESTORE=file
+  export BUILDKITE_PLUGIN_CACHE_PATH=/tmp/tests/data/my_files
+
+  stub cache_dummy \
+    'exists \* : exit 0' \
+    "get \* \* : echo restoring \$2 to \$3"
+
+  run "$PWD/hooks/post-checkout"
+
+  assert_success
+  assert_output --partial 'Cache hit at file level'
+  assert_output --partial 'Cache is compressed, uncompressing with tgz...'
+  assert_output --partial "with options xzPf"
+
+  unstub cache_dummy
+}
diff --git a/tests/post-checkout-zip.bats b/tests/post-checkout-zip.bats
index 0df6aa6..b47cc2f 100644
--- a/tests/post-checkout-zip.bats
+++ b/tests/post-checkout-zip.bats
@@ -24,7 +24,7 @@ setup() {
 
   # stub is the same for all tests
   stub unzip \
-    "-o \* \* : echo uncompressed \$3 into \$4"
+    "-o \* \* : echo uncompressed \$2 into \$3"
 }
 
 teardown() {
@@ -138,7 +138,6 @@ teardown() {
   unstub cache_dummy
 }
 
-
 @test 'Existing lower level restore works' {
   export BUILDKITE_PLUGIN_CACHE_RESTORE=all
 
@@ -156,3 +155,21 @@ teardown() {
 
   unstub cache_dummy
 }
+
+@test 'Existing file-based restore to absolute path' {
+  export BUILDKITE_PLUGIN_CACHE_RESTORE=all
+  export BUILDKITE_PLUGIN_CACHE_PATH=/tmp/tests/data/my_files
+
+  # Need to create a file here to be able to move it to restore path later were it will be removed
+  stub cache_dummy \
+    'exists \* : exit 0' \
+    "get \* \* : mkdir -p $(dirname \$3) && touch \$3 && echo restoring \$2 to \$3"
+
+  run "$PWD/hooks/post-checkout"
+
+  assert_success
+  assert_output --partial 'Cache hit at file level'
+  assert_output --partial "Cache is compressed, uncompressing with zip"
+
+  unstub cache_dummy
+}
diff --git a/tests/post-command-tgz.bats b/tests/post-command-tgz.bats
index 1cfcc31..48460d3 100644
--- a/tests/post-command-tgz.bats
+++ b/tests/post-command-tgz.bats
@@ -27,11 +27,11 @@ setup() {
   export BUILDKITE_PIPELINE_SLUG="cache-pipeline"
 
   # stubs are the same for every test
+  stub tar \
+    "\* \* \* : echo compressed \$2 into \$3 with options \$1"
+
   stub cache_dummy \
     "save \* \* : echo saving \$3 in \$2"
-
-  stub tar \
-    "czf \* \* : echo compressed \$2 into \$3"
 }
 
 teardown() {
@@ -50,6 +50,7 @@ teardown() {
   assert_success
   assert_output --partial 'Saving file-level cache'
   assert_output --partial 'Compressing tests/data/my_files with tgz'
+  assert_output --partial "with options czf"
 }
 
 @test "Step-level saving" {
@@ -106,3 +107,19 @@ teardown() {
   assert_output --partial 'Saving all-level cache'
   assert_output --partial 'Saving pipeline-level cache'
 }
+
+
+@test 'Pipeline-level saving with absolute cache path' {
+  BUILDKITE_PLUGIN_CACHE_PATH="$(mktemp -d)"
+  export BUILDKITE_PLUGIN_CACHE_PATH
+  export BUILDKITE_PLUGIN_CACHE_SAVE=pipeline
+
+  run "$PWD/hooks/post-command"
+
+  assert_success
+  assert_output --partial 'Saving pipeline-level cache'
+  assert_output --partial "Compressing ${BUILDKITE_PLUGIN_CACHE_PATH} with tgz..."
+  assert_output --partial "with options czPf"
+
+  rm -rf "${BUILDKITE_PLUGIN_CACHE_PATH}"
+}
diff --git a/tests/post-command-zip.bats b/tests/post-command-zip.bats
index 6421f7d..d505ed0 100644
--- a/tests/post-command-zip.bats
+++ b/tests/post-command-zip.bats
@@ -107,3 +107,18 @@ teardown() {
   assert_output --partial 'Saving all-level cache'
   assert_output --partial 'Saving pipeline-level cache'
 }
+
+@test 'Pipeline-level saving with absolute cache path' {
+  BUILDKITE_PLUGIN_CACHE_PATH="$(mktemp -d)"
+  export BUILDKITE_PLUGIN_CACHE_PATH
+  export BUILDKITE_PLUGIN_CACHE_SAVE=pipeline
+
+  run "$PWD/hooks/post-command"
+
+  assert_success
+  assert_output --partial "Compressing ${BUILDKITE_PLUGIN_CACHE_PATH} with zip..."
+  assert_output --partial 'Saving pipeline-level cache'
+
+  rm -rf "${BUILDKITE_PLUGIN_CACHE_PATH}"
+}
+