diff --git a/README.md b/README.md
index 915a7f01..2e71b576 100644
--- a/README.md
+++ b/README.md
@@ -46,7 +46,7 @@ Installation can be as easy as executing:
 
 Copy the module config template file to the SimpleSAMLphp config directory:
 
-    cp modules/oidc/config-templates/module_oidc.php config/
+    cp modules/oidc/config/module_oidc.php.dist config/
 
 The options are self-explanatory, so make sure to go through the file and edit them as appropriate.
 
diff --git a/UPGRADE.md b/UPGRADE.md
index 467a23bc..3a71139b 100644
--- a/UPGRADE.md
+++ b/UPGRADE.md
@@ -81,10 +81,14 @@ key `authproc.oidc`
 
 ## Low impact changes
 
-In an effort to move to SimpleSAMLphp way of working with user interface (UI), the client management UI was updated
+- In an effort to move to SimpleSAMLphp way of working with user interface (UI), the client management UI was updated
 to extend from the SimpleSAMLphp base template. In addition, we have also introduced some configuration overview pages
 where you can take a quick view of some of the configuration values for the module. OIDC related pages are now available
-from the main SimpleSAMLphp menu in Administration area.  
+from the main SimpleSAMLphp menu in Administration area.
+
+- The OIDC config template file has been moved from `config-templates/module_oidc.php` to `config/module_oidc.php.dist`.
+This is only relevant for new installations, since initially it is needed to copy the template file to default SSP
+config dir. README has been updated to reflect that change.
 
 Below are also some internal changes that should not have impact for the OIDC OP implementors. However, if you are using
 this module as a library or extending from it, you will probably encounter breaking changes, since a lot of code
diff --git a/config-templates/module_oidc.php b/config/module_oidc.php.dist
similarity index 100%
rename from config-templates/module_oidc.php
rename to config/module_oidc.php.dist
diff --git a/phpcs.xml b/phpcs.xml
index 6d2a0fd6..b1904153 100644
--- a/phpcs.xml
+++ b/phpcs.xml
@@ -9,7 +9,7 @@
     <config name="show_progress" value="1"/>
     <config name="ignore_warnings_on_exit" value="0"/>
 
-    <file>config-templates</file>
+    <file>config</file>
     <file>hooks</file>
     <file>src</file>
     <file>tests</file>
diff --git a/psalm.xml b/psalm.xml
index 7c7bf4a9..7ea003ea 100644
--- a/psalm.xml
+++ b/psalm.xml
@@ -10,7 +10,7 @@
   xsi:schemaLocation="https://getpsalm.org/schema/config vendor/vimeo/psalm/config.xsd"
 >
   <projectFiles>
-    <directory name="config-templates" />
+    <directory name="config" />
     <directory name="hooks" />
     <directory name="src" />
     <directory name="templates" />
@@ -29,12 +29,6 @@
           <file name="tests/bootstrap.php" />
         </errorLevel>
     </UnresolvableInclude>
-    <!-- Ignore UnusedVariable in config template -->
-    <UnusedVariable>
-      <errorLevel type="suppress">
-        <file name="config-templates/module_oidc.php" />
-      </errorLevel>
-    </UnusedVariable>
     <InvalidClassConstantType>
       <errorLevel type="suppress">
         <file name="src/Forms/Controls/CsrfProtection.php" />
diff --git a/tests/integration/src/Repositories/AccessTokenRepositoryTest.php b/tests/integration/src/Repositories/AccessTokenRepositoryTest.php
index 4b3a19b9..2c096334 100644
--- a/tests/integration/src/Repositories/AccessTokenRepositoryTest.php
+++ b/tests/integration/src/Repositories/AccessTokenRepositoryTest.php
@@ -87,7 +87,7 @@ public static function setUpBeforeClass(): void
             self::$mysqlPort ??= "3306";
             self::$postgresPort ??= "5432";
         }
-        Configuration::setConfigDir(__DIR__ . '/../../../../config-templates');
+        Configuration::setConfigDir(__DIR__ . '/../../../config');
         self::$pgConfig = self::loadPGDatabase();
         self::$mysqlConfig = self::loadMySqlDatabase();
         self::$sqliteConfig = self::loadSqliteDatabase();
diff --git a/tests/unit/src/Repositories/ScopeRepositoryTest.php b/tests/unit/src/Repositories/ScopeRepositoryTest.php
index 308c32df..3618df14 100644
--- a/tests/unit/src/Repositories/ScopeRepositoryTest.php
+++ b/tests/unit/src/Repositories/ScopeRepositoryTest.php
@@ -41,7 +41,7 @@ public static function setUpBeforeClass(): void
         ];
 
         Configuration::loadFromArray($config, '', 'simplesaml');
-        Configuration::setConfigDir(__DIR__ . '/../../../../config-templates');
+        Configuration::setConfigDir(__DIR__ . '/../../../config');
         (new DatabaseMigration())->migrate();
     }