diff --git a/.gitlab/README.md.template b/.gitlab/README.md.template
index 6addbf731d21190384674b2752e7f81451756b25..e3dae83040f6cff45b3e49a3426e8b5f2ee966ab 100644
--- a/.gitlab/README.md.template
+++ b/.gitlab/README.md.template
@@ -152,8 +152,8 @@ The only thing you have to do is to provide a passphrase.
 
 All templates related to the state have the following inputs related to auto-encryption:
 
-- `auto_encrpytion` (`boolean`): if set to `true` will auto-encrypt your state and plan.
-- `auto_encrpytion_passphrase` (`string`): is required if `auto_encrpytion` is `true` and
+- `auto_encryption` (`boolean`): if set to `true` will auto-encrypt your state and plan.
+- `auto_encryption_passphrase` (`string`): is required if `auto_encryption` is `true` and
   defines the passphrase for your state and plan files. Make sure to keep it secured.
   You may use a protected and masked GitLab CI/CD variable for it.
 - `auto_encryption_enable_migration_from_unencrypted` (`boolean`): if set to `true` will
@@ -176,8 +176,8 @@ include:
       # once https://gitlab.com/gitlab-org/gitlab/-/issues/438275 is solved.
       version: <VERSION> # component version
       opentofu_version: <OPENTOFU_VERSION>
-      auto_encrpytion: true
-      auto_encrpytion_passphrase: $PASSPHRASE
+      auto_encryption: true
+      auto_encryption_passphrase: $PASSPHRASE
 
 stages: [validate, build, deploy]
 ```
diff --git a/README.md b/README.md
index 8b0fd8f74250a651aebaa836a4116d07cdc089ed..def1dfb1eb939afcdd69b70c76ddb32fcc87c6e7 100644
--- a/README.md
+++ b/README.md
@@ -154,8 +154,8 @@ The only thing you have to do is to provide a passphrase.
 
 All templates related to the state have the following inputs related to auto-encryption:
 
-- `auto_encrpytion` (`boolean`): if set to `true` will auto-encrypt your state and plan.
-- `auto_encrpytion_passphrase` (`string`): is required if `auto_encrpytion` is `true` and
+- `auto_encryption` (`boolean`): if set to `true` will auto-encrypt your state and plan.
+- `auto_encryption_passphrase` (`string`): is required if `auto_encryption` is `true` and
   defines the passphrase for your state and plan files. Make sure to keep it secured.
   You may use a protected and masked GitLab CI/CD variable for it.
 - `auto_encryption_enable_migration_from_unencrypted` (`boolean`): if set to `true` will
@@ -178,8 +178,8 @@ include:
       # once https://gitlab.com/gitlab-org/gitlab/-/issues/438275 is solved.
       version: <VERSION> # component version
       opentofu_version: <OPENTOFU_VERSION>
-      auto_encrpytion: true
-      auto_encrpytion_passphrase: $PASSPHRASE
+      auto_encryption: true
+      auto_encryption_passphrase: $PASSPHRASE
 
 stages: [validate, build, deploy]
 ```