diff --git a/tests/test-values.yaml b/tests/test-values.yaml
index e6f4d88acc6848600ac2e9a5c388c97efbc86483..d0e3d3e44463be2523305c8b9ca5fe3b5abbc6e7 100644
--- a/tests/test-values.yaml
+++ b/tests/test-values.yaml
@@ -536,6 +536,9 @@ addons:
             requests:
               cpu: 10m
             limits: {}
+        # Required for RKE2 nightly CI cluster with FIPS since Gitlab 14.7.X
+        postgresqlExtendedConf:
+          passwordEncryption: "scram-sha-256"
       minio:
         persistence:
           size: 256Mi