diff --git a/gluon/packages/dal b/gluon/packages/dal
index 32cde26b..881a5337 160000
--- a/gluon/packages/dal
+++ b/gluon/packages/dal
@@ -1 +1 @@
-Subproject commit 32cde26be1913c67738f21f1a674f5dadfe72a8a
+Subproject commit 881a533765bada3b1d63690f6549157f4e0508b9
diff --git a/gluon/scheduler.py b/gluon/scheduler.py
index e758c379..710815db 100644
--- a/gluon/scheduler.py
+++ b/gluon/scheduler.py
@@ -1158,7 +1158,7 @@ class Scheduler(MetaScheduler):
         if not self.db_thread:
             logger.debug('thread building own DAL object')
             self.db_thread = DAL(
-                self.db._uri, folder=self.db._adapter.folder)
+                self.db._uri, folder=self.db._adapter.folder, decode_credentials=True)
             self.define_tables(self.db_thread, migrate=False)
         try:
             db = self.db_thread
@@ -1698,7 +1698,7 @@ def main():
     print('groups for this worker: ' + ', '.join(group_names))
     print('connecting to database in folder: ' + options.db_folder or './')
     print('using URI: ' + options.db_uri)
-    db = DAL(options.db_uri, folder=options.db_folder)
+    db = DAL(options.db_uri, folder=options.db_folder, decode_credentials=True)
     print('instantiating scheduler...')
     scheduler = Scheduler(db=db,
                           worker_name=options.worker_name,