diff --git a/CMakeLists.txt b/CMakeLists.txt
index 1a2beaa..c04fa8a 100644
--- a/CMakeLists.txt
+++ b/CMakeLists.txt
@@ -192,6 +192,17 @@ if (PUGIXML_USE_POSTFIX)
   endif()
 endif()
 
+# Handle both relative and absolute paths (e.g. NixOS) for a relocatable package
+if(IS_ABSOLUTE "${CMAKE_INSTALL_INCLUDEDIR}")
+  set(PUGIXML_PC_INCLUDEDIR "${CMAKE_INSTALL_INCLUDEDIR}")
+else()
+  set(PUGIXML_PC_INCLUDEDIR "\${prefix}/${CMAKE_INSTALL_INCLUDEDIR}")
+endif()
+if(IS_ABSOLUTE "${CMAKE_INSTALL_LIBDIR}")
+  set(PUGIXML_PC_LIBDIR "${CMAKE_INSTALL_LIBDIR}")
+else()
+  set(PUGIXML_PC_LIBDIR "\${exec_prefix}/${CMAKE_INSTALL_LIBDIR}")
+endif()
 configure_file(scripts/pugixml.pc.in pugixml.pc @ONLY)
 
 export(TARGETS ${install-targets}
diff --git a/scripts/pugixml.pc.in b/scripts/pugixml.pc.in
index 7958774..cfb81f5 100644
--- a/scripts/pugixml.pc.in
+++ b/scripts/pugixml.pc.in
@@ -1,7 +1,7 @@
 prefix=@CMAKE_INSTALL_PREFIX@
 exec_prefix=${prefix}
-includedir=@CMAKE_INSTALL_FULL_INCLUDEDIR@@INSTALL_SUFFIX@
-libdir=@CMAKE_INSTALL_FULL_LIBDIR@@INSTALL_SUFFIX@
+includedir=@PUGIXML_PC_INCLUDEDIR@
+libdir=@PUGIXML_PC_LIBDIR@
 
 Name: pugixml
 Description: Light-weight, simple and fast XML parser for C++ with XPath support.