diff --git a/.github/workflows/auto-label-action.yml b/.github/workflows/auto-label-action.yml
index 44bfc6c5..d4147934 100644
--- a/.github/workflows/auto-label-action.yml
+++ b/.github/workflows/auto-label-action.yml
@@ -9,6 +9,7 @@ on:
 permissions:
   issues: write
   pull-requests: write
+  contents: read # Required to read repository contents
 
 jobs:
   label:
diff --git a/README.md b/README.md
index 49943f05..6fa4e5d4 100644
--- a/README.md
+++ b/README.md
@@ -48,6 +48,19 @@ Contributions are what make the **open-source** community such an amazing place
 🔃 Open a <b>pull request</b>.
 
 
+## 📄 Workflow Configuration
+
+The `.github/workflows/auto-label-action.yml` file is used to automatically add labels to new issues and pull requests. This helps in organizing and managing the repository more efficiently.
+
+### Permissions Required
+
+The GitHub token used in the workflow file must have the following permissions:
+- `issues: write`
+- `pull-requests: write`
+- `contents: read`
+
+These permissions ensure that the workflow can read the repository contents and write labels to issues and pull requests.
+
 
 ## 👨‍💻 Author
 ### Created with ❤️ by Swaraj Das