diff --git a/lib/Settings/Admin.php b/lib/Settings/Admin.php
index aca99c2b7..ed488fb0e 100644
--- a/lib/Settings/Admin.php
+++ b/lib/Settings/Admin.php
@@ -59,8 +59,6 @@ public function getForm(): TemplateResponse {
 		$projectFolderStatusInformation = $this->openProjectAPIService->getProjectFolderSetupInformation();
 		$isAllTermsOfServiceSignedForUserOpenProject = $this->openProjectAPIService->isAllTermsOfServiceSignedForUserOpenProject();
 		$isAdminAuditConfigurationSetUpCorrectly = $this->openProjectAPIService->isAdminAuditConfigSetCorrectly();
-		$isServerSideEncryptionEnabled = $this->openProjectAPIService->isServerSideEncryptionEnabled();
-		$isEncryptionEnabledForGroupFolders = $this->config->getAppValue('groupfolders', 'enable_encryption', '') === 'true';
 		$adminConfig = [
 			'openproject_client_id' => $clientID,
 			'openproject_client_secret' => $clientSecret,
@@ -73,7 +71,10 @@ public function getForm(): TemplateResponse {
 			'fresh_project_folder_setup' => $this->config->getAppValue(Application::APP_ID, 'fresh_project_folder_setup', '0') === '1',
 			'all_terms_of_services_signed' => $isAllTermsOfServiceSignedForUserOpenProject,
 			'admin_audit_configuration_correct' => $isAdminAuditConfigurationSetUpCorrectly,
-			'show_groupfolders_encryption_warning' => $isServerSideEncryptionEnabled && !$isEncryptionEnabledForGroupFolders
+			'encryption_info' => [
+				'server_side_encryption_enabled' => $this->openProjectAPIService->isServerSideEncryptionEnabled(),
+				'encryption_enabled_for_groupfolders' => $this->config->getAppValue('groupfolders', 'enable_encryption', '') === 'true'
+			]
 		];
 
 		$adminConfigStatus = OpenProjectAPIService::isAdminConfigOk($this->config);
diff --git a/src/components/AdminSettings.vue b/src/components/AdminSettings.vue
index a0eb96563..4424a1110 100644
--- a/src/components/AdminSettings.vue
+++ b/src/components/AdminSettings.vue
@@ -182,7 +182,7 @@
 				:title="t('integration_openproject', 'Project folders (recommended)')"
 				:is-setup-complete-without-project-folders="isSetupCompleteWithoutProjectFolders"
 				:is-there-error-after-project-folder-and-app-password-setup="isThereErrorAfterProjectFolderAndAppPasswordSetup"
-				:is-there-group-folders-encryption-warning-after-project-folder-setup="isWarningForEncryptionNotEnabledForGroupFolders"
+				:is-there-group-folders-encryption-warning-after-project-folder-setup="showEncryptionWarningForGroupFolders"
 				:is-complete="isProjectFolderSetupCompleted"
 				:is-disabled="isProjectFolderSetUpInDisableMode"
 				:is-dark-theme="isDarkTheme" />
@@ -262,7 +262,7 @@
 						v-if="state.app_password_set && !isProjectFolderSetupCorrect"
 						:project-folder-set-up-error-message-description="projectFolderSetUpErrorMessageDescription(state.project_folder_info.errorMessage)"
 						:project-folder-set-up-error="state.project_folder_info.errorMessage" />
-					<NcNoteCard v-else-if="isWarningForEncryptionNotEnabledForGroupFolders" class="note-card" type="warning">
+					<NcNoteCard v-else-if="showEncryptionWarningForGroupFolders" class="note-card" type="warning">
 						<p><b>Encryption for Group Folders are not enabled.</b></p>
 						<p class="note-card--info" v-html="getGroupFolderEncryptionNotEnabledHint"></p> <!-- eslint-disable-line vue/no-v-html -->
 					</NcNoteCard>
@@ -579,11 +579,12 @@ export default {
 		isResetButtonDisabled() {
 			return !(this.state.openproject_client_id || this.state.openproject_client_secret || this.state.openproject_instance_url)
 		},
-		isWarningForEncryptionNotEnabledForGroupFolders() {
-			return this.isProjectFolderAlreadySetup
-				&& this.state.show_groupfolders_encryption_warning
-				&& this.state.app_password_set
-				&& !this.isProjectFolderSetupFormInEdit
+		showEncryptionWarningForGroupFolders() {
+			if (!this.isProjectFolderAlreadySetup || !this.state.app_password_set || this.isProjectFolderSetupFormInEdit) {
+				return false;
+			}
+			return this.state.encryption_info.server_side_encryption_enabled
+				&& !this.state.encryption_info.encryption_enabled_for_groupfolders;
 		},
 	},
 	created() {