diff --git a/snapshot/snapshotfs/upload.go b/snapshot/snapshotfs/upload.go
index ac5a5cbb6..a945122e3 100644
--- a/snapshot/snapshotfs/upload.go
+++ b/snapshot/snapshotfs/upload.go
@@ -75,7 +75,7 @@ func (u *Uploader) cancelReason() string {
 	return ""
 }
 
-func (u *Uploader) uploadFileInternal(ctx context.Context, f fs.File) entryResult {
+func (u *Uploader) uploadFileInternal(ctx context.Context, f fs.File, pol *policy.Policy) entryResult {
 	file, err := f.Open(ctx)
 	if err != nil {
 		return entryResult{err: errors.Wrap(err, "unable to open file")}
@@ -84,6 +84,7 @@ func (u *Uploader) uploadFileInternal(ctx context.Context, f fs.File) entryResul
 
 	writer := u.repo.Objects.NewWriter(ctx, object.WriterOptions{
 		Description: "FILE:" + f.Name(),
+		Compressor:  pol.CompressionPolicy.CompressorForFile(f.Name()),
 	})
 	defer writer.Close() //nolint:errcheck
 
@@ -236,8 +237,8 @@ func newDirEntry(md fs.Entry, oid object.ID) (*snapshot.DirEntry, error) {
 }
 
 // uploadFile uploads the specified File to the repository.
-func (u *Uploader) uploadFile(ctx context.Context, file fs.File) (*snapshot.DirEntry, error) {
-	res := u.uploadFileInternal(ctx, file)
+func (u *Uploader) uploadFile(ctx context.Context, file fs.File, pol *policy.Policy) (*snapshot.DirEntry, error) {
+	res := u.uploadFileInternal(ctx, file, pol)
 	if res.err != nil {
 		return nil, res.err
 	}
@@ -259,8 +260,8 @@ func (u *Uploader) uploadFile(ctx context.Context, file fs.File) (*snapshot.DirE
 // uploadDir uploads the specified Directory to the repository.
 // An optional ID of a hash-cache object may be provided, in which case the Uploader will use its
 // contents to avoid hashing
-func (u *Uploader) uploadDir(ctx context.Context, rootDir fs.Directory, previousDirs []fs.Directory) (*snapshot.DirEntry, error) {
-	oid, summ, err := uploadDirInternal(ctx, u, rootDir, previousDirs, ".")
+func (u *Uploader) uploadDir(ctx context.Context, rootDir fs.Directory, policyTree *policy.Tree, previousDirs []fs.Directory) (*snapshot.DirEntry, error) {
+	oid, summ, err := uploadDirInternal(ctx, u, rootDir, policyTree, previousDirs, ".")
 	if err != nil {
 		return nil, err
 	}
@@ -296,7 +297,7 @@ type entryResult struct {
 	de  *snapshot.DirEntry
 }
 
-func (u *Uploader) processSubdirectories(ctx context.Context, relativePath string, entries fs.Entries, previousEntries []fs.Entries, dirManifest *snapshot.DirManifest, summ *fs.DirectorySummary) error {
+func (u *Uploader) processSubdirectories(ctx context.Context, relativePath string, entries fs.Entries, policyTree *policy.Tree, previousEntries []fs.Entries, dirManifest *snapshot.DirManifest, summ *fs.DirectorySummary) error {
 	return u.foreachEntryUnlessCancelled(relativePath, entries, func(entry fs.Entry, entryRelativePath string) error {
 		dir, ok := entry.(fs.Directory)
 		if !ok {
@@ -313,7 +314,7 @@ func (u *Uploader) processSubdirectories(ctx context.Context, relativePath strin
 
 		previousDirs = uniqueDirectories(previousDirs)
 
-		oid, subdirsumm, err := uploadDirInternal(ctx, u, dir, previousDirs, entryRelativePath)
+		oid, subdirsumm, err := uploadDirInternal(ctx, u, dir, policyTree.Child(entry.Name()), previousDirs, entryRelativePath)
 		if err == errCancelled {
 			return err
 		}
@@ -423,7 +424,7 @@ func (u *Uploader) maybeIgnoreCachedEntry(ent fs.Entry) fs.Entry {
 	return nil
 }
 
-func (u *Uploader) prepareWorkItems(ctx context.Context, dirRelativePath string, entries fs.Entries, prevEntries []fs.Entries, summ *fs.DirectorySummary) ([]*uploadWorkItem, error) {
+func (u *Uploader) prepareWorkItems(ctx context.Context, dirRelativePath string, entries fs.Entries, policyTree *policy.Tree, prevEntries []fs.Entries, summ *fs.DirectorySummary) ([]*uploadWorkItem, error) {
 	var result []*uploadWorkItem
 
 	resultErr := u.foreachEntryUnlessCancelled(dirRelativePath, entries, func(entry fs.Entry, entryRelativePath string) error {
@@ -479,7 +480,7 @@ func (u *Uploader) prepareWorkItems(ctx context.Context, dirRelativePath string,
 					entry:             entry,
 					entryRelativePath: entryRelativePath,
 					uploadFunc: func() entryResult {
-						return u.uploadFileInternal(ctx, entry)
+						return u.uploadFileInternal(ctx, entry, policyTree.Child(entry.Name()).EffectivePolicy())
 					},
 				})
 
@@ -606,6 +607,7 @@ func uploadDirInternal(
 	ctx context.Context,
 	u *Uploader,
 	directory fs.Directory,
+	policyTree *policy.Tree,
 	previousDirs []fs.Directory,
 	dirRelativePath string,
 ) (object.ID, fs.DirectorySummary, error) {
@@ -644,14 +646,14 @@ func uploadDirInternal(
 		StreamType: directoryStreamType,
 	}
 
-	if err := u.processSubdirectories(ctx, dirRelativePath, entries, prevEntries, dirManifest, &summ); err != nil && err != errCancelled {
+	if err := u.processSubdirectories(ctx, dirRelativePath, entries, policyTree, prevEntries, dirManifest, &summ); err != nil && err != errCancelled {
 		return "", fs.DirectorySummary{}, err
 	}
 
 	u.prepareProgress(dirRelativePath, entries)
 
 	log.Debugf("preparing work items %v", dirRelativePath)
-	workItems, workItemErr := u.prepareWorkItems(ctx, dirRelativePath, entries, prevEntries, &summ)
+	workItems, workItemErr := u.prepareWorkItems(ctx, dirRelativePath, entries, policyTree, prevEntries, &summ)
 	log.Debugf("finished preparing work items %v", dirRelativePath)
 
 	if workItemErr != nil && workItemErr != errCancelled {
@@ -751,10 +753,10 @@ func (u *Uploader) Upload(
 		entry = ignorefs.New(entry, policyTree, ignorefs.ReportIgnoredFiles(func(_ string, md fs.Entry) {
 			u.stats.AddExcluded(md)
 		}))
-		s.RootEntry, err = u.uploadDir(ctx, entry, previousDirs)
+		s.RootEntry, err = u.uploadDir(ctx, entry, policyTree, previousDirs)
 
 	case fs.File:
-		s.RootEntry, err = u.uploadFile(ctx, entry)
+		s.RootEntry, err = u.uploadFile(ctx, entry, policyTree.EffectivePolicy())
 
 	default:
 		return nil, errors.Errorf("unsupported source: %v", s.Source)