Is Compensation and Promotion hike are different

Both refers to the salary hike, but different in their context. Compensation is a general hike that is a part of a annual appraisal based on your performance, market performance etc.Typically there is no role change While the promotion hike is a salary hike that you will get when get promoted from one grade to another grade, based on your career progression. Ideally you will have a role change with more responsibilities