diff --git a/instance/config_example.py b/instance/config_example.py
index 7af874eae2741b4bab79090d50520cd3f65b1c64..abddbbde71ce52290c766722eba755d8ba5879e3 100644
--- a/instance/config_example.py
+++ b/instance/config_example.py
@@ -1,10 +1,16 @@
+import os
+from urllib.parse import quote_plus
+
+# Get database configuration from environment variables
 DATABASE_CONFIG = {
-    "host": "your_host",  # insert your localhost to your_host
-    "user": "your_user",  # inser your user to your_user
-    "password": "your_password",  # insert your password to your_password
-    # (change @ to %40 if the last character of your password is @)
-    "database": "your_database",  # insert your database to your_database
+    "host": os.environ.get("DB_HOST", "db"),
+    "user": os.environ.get("DB_USER", "hrapp"),
+    "password": os.environ.get("DB_PASSWORD", "changeme_in_production"),
+    "database": os.environ.get("DB_NAME", "hrms"),
+    "port": int(os.environ.get("DB_PORT", 3306)),
 }
 
-DATABASE_URI = f"mysql+pymysql://{DATABASE_CONFIG['user']}:{DATABASE_CONFIG['password']}@{DATABASE_CONFIG['host']}:{DATABASE_CONFIG['port']}/{DATABASE_CONFIG['database']}"
+# Use proper URL encoding for the password
+encoded_password = quote_plus(DATABASE_CONFIG["password"])
+DATABASE_URI = f"mysql+pymysql://{DATABASE_CONFIG['user']}:{encoded_password}@{DATABASE_CONFIG['host']}:{DATABASE_CONFIG['port']}/{DATABASE_CONFIG['database']}"
 SQLALCHEMY_TRACK_MODIFICATIONS = False