diff --git a/README.md b/README.md
index 9d9549e..088e15b 100644
--- a/README.md
+++ b/README.md
@@ -14,7 +14,7 @@ The program automatically scales all designs to these specific measurements for
 
 - **Total Width**: 87.80 mm
 - **Background Thickness**: 3.0 mm
-- **Text/Detail Thickness**: 2.0 mm
+- **Text/Detail Thickness**: 2.3 mm (includes 0.3mm inset compensation)
 - **Text/Detail Offset**: 3.0 mm (Text sits at 4mm from the bottom)
 - **Total Height**: 5.0 mm (Text sits 3mm high and extends 2mm up)
 
diff --git a/convert_nametags.py b/convert_nametags.py
index e93fd3f..7e52ed5 100644
--- a/convert_nametags.py
+++ b/convert_nametags.py
@@ -15,8 +15,8 @@ logger = logging.getLogger(__name__)
 
 # Constants based on specs
 BACKGROUND_THICKNESS = 3.0
-TEXT_THICKNESS = 2.0
-TEXT_Z_OFFSET = 3.0  # Starts on top of background
+TEXT_THICKNESS = 2.0 + 0.3  # 2.3mm (base 2.0 + 0.3mm for inset compensation)
+TEXT_Z_OFFSET = 3.0 - 0.3  # 2.7mm - starts inset into background
 CURVE_RESOLUTION = 64 # number of segments per circle
 
 # SVG Class mappings