diff --git a/SYSTEMD.md b/SYSTEMD.md
index de4e41d..6caca49 100644
--- a/SYSTEMD.md
+++ b/SYSTEMD.md
@@ -116,8 +116,9 @@ sudo chmod 755 /usr/local/bin/dbbackup
 ### Step 2: Create Configuration
 
 ```bash
-# Main configuration
-sudo tee /etc/dbbackup/dbbackup.conf << 'EOF'
+# Main configuration in working directory (where service runs from)
+# dbbackup reads .dbbackup.conf from WorkingDirectory
+sudo tee /var/lib/dbbackup/.dbbackup.conf << 'EOF'
 # DBBackup Configuration
 db-type=postgres
 host=localhost
@@ -128,6 +129,8 @@ compression=6
 retention-days=30
 min-backups=7
 EOF
+sudo chown dbbackup:dbbackup /var/lib/dbbackup/.dbbackup.conf
+sudo chmod 600 /var/lib/dbbackup/.dbbackup.conf
 
 # Instance credentials (secure permissions)
 sudo tee /etc/dbbackup/env.d/cluster.conf << 'EOF'
@@ -157,13 +160,15 @@ Group=dbbackup
 # Load configuration
 EnvironmentFile=-/etc/dbbackup/env.d/cluster.conf
 
-# Working directory
+# Working directory (config is loaded from .dbbackup.conf here)
 WorkingDirectory=/var/lib/dbbackup
 
-# Execute backup
+# Execute backup (reads .dbbackup.conf from WorkingDirectory)
 ExecStart=/usr/local/bin/dbbackup backup cluster \
-    --config /etc/dbbackup/dbbackup.conf \
     --backup-dir /var/lib/dbbackup/backups \
+    --host localhost \
+    --port 5432 \
+    --user postgres \
     --allow-root
 
 # Security hardening
@@ -443,12 +448,12 @@ sudo systemctl status dbbackup-cluster.service
 # View detailed error
 sudo journalctl -u dbbackup-cluster.service -n 50 --no-pager
 
-# Test manually as dbbackup user
-sudo -u dbbackup /usr/local/bin/dbbackup backup cluster --config /etc/dbbackup/dbbackup.conf
+# Test manually as dbbackup user (run from working directory with .dbbackup.conf)
+cd /var/lib/dbbackup && sudo -u dbbackup /usr/local/bin/dbbackup backup cluster
 
 # Check permissions
 ls -la /var/lib/dbbackup/
-ls -la /etc/dbbackup/
+ls -la /var/lib/dbbackup/.dbbackup.conf
 ```
 
 ### Permission Denied
diff --git a/bin/README.md b/bin/README.md
index 602392e..6d0c43b 100644
--- a/bin/README.md
+++ b/bin/README.md
@@ -4,8 +4,8 @@ This directory contains pre-compiled binaries for the DB Backup Tool across mult
 
 ## Build Information
 - **Version**: 3.42.10
-- **Build Time**: 2026-01-08_09:54:02_UTC
-- **Git Commit**: 83ad62b
+- **Build Time**: 2026-01-08_10:18:23_UTC
+- **Git Commit**: 682510d
 
 ## Recent Updates (v1.1.0)
 - ✅ Fixed TUI progress display with line-by-line output
diff --git a/internal/installer/templates/dbbackup-cluster.service b/internal/installer/templates/dbbackup-cluster.service
index be5f405..d404770 100644
--- a/internal/installer/templates/dbbackup-cluster.service
+++ b/internal/installer/templates/dbbackup-cluster.service
@@ -33,8 +33,11 @@ RestrictAddressFamilies=AF_UNIX AF_INET AF_INET6
 # Environment
 EnvironmentFile=-/etc/dbbackup/env.d/cluster.conf
 
+# Working directory (config is loaded from .dbbackup.conf here)
+WorkingDirectory=/var/lib/dbbackup
+
 # Execution - cluster backup (all databases)
-ExecStart={{.BinaryPath}} backup cluster --config {{.ConfigPath}}
+ExecStart={{.BinaryPath}} backup cluster --backup-dir {{.BackupDir}}
 TimeoutStartSec={{.TimeoutSeconds}}
 
 # Post-backup metrics export
diff --git a/internal/installer/templates/dbbackup@.service b/internal/installer/templates/dbbackup@.service
index 00d2785..5e76f9f 100644
--- a/internal/installer/templates/dbbackup@.service
+++ b/internal/installer/templates/dbbackup@.service
@@ -33,8 +33,11 @@ RestrictAddressFamilies=AF_UNIX AF_INET AF_INET6
 # Environment
 EnvironmentFile=-/etc/dbbackup/env.d/%i.conf
 
+# Working directory (config is loaded from .dbbackup.conf here)
+WorkingDirectory=/var/lib/dbbackup
+
 # Execution
-ExecStart={{.BinaryPath}} backup {{.BackupType}} %i --config {{.ConfigPath}}
+ExecStart={{.BinaryPath}} backup {{.BackupType}} %i --backup-dir {{.BackupDir}}
 TimeoutStartSec={{.TimeoutSeconds}}
 
 # Post-backup metrics export