diff --git a/packages/twenty-ui/src/display/chip/components/Chip.module.css b/packages/twenty-ui/src/display/chip/components/Chip.module.css
index 1183d02011c4..f61c80cf715b 100644
--- a/packages/twenty-ui/src/display/chip/components/Chip.module.css
+++ b/packages/twenty-ui/src/display/chip/components/Chip.module.css
@@ -72,7 +72,7 @@
 
 .variant-rounded {
   --chip-horizontal-padding: calc(var(--twentycrm-spacing-multiplicator) * 2px);
-  --chip-vertical-padding: 3px;
+  --chip-vertical-padding: 1px;
 
   background-color: var(--twentycrm-background-transparent-light);
   border: 1px solid var(--twentycrm-border-color-medium);