diff --git a/bitnami/postgresql/12/debian-10/Dockerfile b/bitnami/postgresql/12/debian-10/Dockerfile
index ad407120b17c..b17ef38881ca 100644
--- a/bitnami/postgresql/12/debian-10/Dockerfile
+++ b/bitnami/postgresql/12/debian-10/Dockerfile
@@ -24,7 +24,7 @@ COPY rootfs /
 RUN /opt/bitnami/scripts/postgresql/postunpack.sh
 RUN /opt/bitnami/scripts/locales/add-extra-locales.sh
 ENV BITNAMI_APP_NAME="postgresql" \
-    BITNAMI_IMAGE_VERSION="12.5.0-debian-10-r61" \
+    BITNAMI_IMAGE_VERSION="12.5.0-debian-10-r62" \
     LANG="en_US.UTF-8" \
     LANGUAGE="en_US:en" \
     NSS_WRAPPER_LIB="/opt/bitnami/common/lib/libnss_wrapper.so" \
diff --git a/bitnami/postgresql/12/debian-10/prebuildfs/opt/bitnami/scripts/libos.sh b/bitnami/postgresql/12/debian-10/prebuildfs/opt/bitnami/scripts/libos.sh
index cc45a19ce099..f38437a1d407 100644
--- a/bitnami/postgresql/12/debian-10/prebuildfs/opt/bitnami/scripts/libos.sh
+++ b/bitnami/postgresql/12/debian-10/prebuildfs/opt/bitnami/scripts/libos.sh
@@ -37,14 +37,34 @@ group_exists() {
 # Create a group in the system if it does not exist already
 # Arguments:
 #   $1 - group
+# Flags:
+#   -s|--system - Whether to create new user as system user (uid <= 999)
 # Returns:
 #   None
 #########################
 ensure_group_exists() {
     local group="${1:?group is missing}"
+    local is_system_user=false
+
+    # Validate arguments
+    shift 1
+    while [ "$#" -gt 0 ]; do
+        case "$1" in
+            -s|--system)
+                is_system_user=true
+                ;;
+            *)
+                echo "Invalid command line flag $1" >&2
+                return 1
+                ;;
+        esac
+        shift
+    done
 
     if ! group_exists "$group"; then
-        groupadd "$group" >/dev/null 2>&1
+        local -a args=("$group")
+        $is_system_user && args+=("--system")
+        groupadd "${args[@]}" >/dev/null 2>&1
     fi
 }
 
@@ -52,22 +72,60 @@ ensure_group_exists() {
 # Create an user in the system if it does not exist already
 # Arguments:
 #   $1 - user
-#   $2 - group
+# Flags:
+#   -g|--group - the group the new user should belong to
+#   -h|--home - the home directory for the new user
+#   -s|--system - whether to create new user as system user (uid <= 999)
 # Returns:
 #   None
 #########################
 ensure_user_exists() {
     local user="${1:?user is missing}"
-    local group="${2:-}"
+    local group=""
+    local home=""
+    local is_system_user=false
+
+    # Validate arguments
+    shift 1
+    while [ "$#" -gt 0 ]; do
+        case "$1" in
+            -g|--group)
+                shift
+                group="${1:?missing group}"
+                ;;
+            -h|--home)
+                shift
+                home="${1:?missing home directory}"
+                ;;
+            -s|--system)
+                is_system_user=true
+                ;;
+            *)
+                echo "Invalid command line flag $1" >&2
+                return 1
+                ;;
+        esac
+        shift
+    done
 
     if ! user_exists "$user"; then
-        useradd "$user" >/dev/null 2>&1
+        local -a user_args=("-N" "$user")
+        $is_system_user && user_args+=("--system")
+        useradd "${user_args[@]}" >/dev/null 2>&1
     fi
 
     if [[ -n "$group" ]]; then
-        ensure_group_exists "$group"
+        local -a group_args=("$group")
+        $is_system_user && group_args+=("--system")
+        ensure_group_exists "${group_args[@]}"
         usermod -a -G "$group" "$user" >/dev/null 2>&1
     fi
+
+    if [[ -n "$home" ]]; then
+        mkdir -p "$home"
+        usermod -d "$home" "$user" >/dev/null 2>&1
+        configure_permissions_ownership "$home" -d "775" -f "664" -u "$user" -g "$group"
+    fi
 }
 
 ########################
diff --git a/bitnami/postgresql/12/debian-10/rootfs/opt/bitnami/scripts/postgresql/setup.sh b/bitnami/postgresql/12/debian-10/rootfs/opt/bitnami/scripts/postgresql/setup.sh
index 8709e0155b4c..d1d6702e020a 100755
--- a/bitnami/postgresql/12/debian-10/rootfs/opt/bitnami/scripts/postgresql/setup.sh
+++ b/bitnami/postgresql/12/debian-10/rootfs/opt/bitnami/scripts/postgresql/setup.sh
@@ -22,7 +22,7 @@ postgresql_validate
 # Ensure PostgreSQL is stopped when this script ends.
 trap "postgresql_stop" EXIT
 # Ensure 'daemon' user exists when running as 'root'
-am_i_root && ensure_user_exists "$POSTGRESQL_DAEMON_USER" "$POSTGRESQL_DAEMON_GROUP"
+am_i_root && ensure_user_exists "$POSTGRESQL_DAEMON_USER" --group "$POSTGRESQL_DAEMON_GROUP"
 # Fix logging issue when running as root
 am_i_root && chmod o+w "$(readlink /dev/stdout)"
 # Allow running custom pre-initialization scripts
diff --git a/bitnami/postgresql/README.md b/bitnami/postgresql/README.md
index e2ea249813be..487b33a18340 100644
--- a/bitnami/postgresql/README.md
+++ b/bitnami/postgresql/README.md
@@ -45,7 +45,7 @@ Learn more about the Bitnami tagging policy and the difference between rolling t
 
 
 * [`13`, `13-debian-10`, `13.1.0`, `13.1.0-debian-10-r63` (13/debian-10/Dockerfile)](https://github.com/bitnami/bitnami-docker-postgresql/blob/13.1.0-debian-10-r63/13/debian-10/Dockerfile)
-* [`12`, `12-debian-10`, `12.5.0`, `12.5.0-debian-10-r61` (12/debian-10/Dockerfile)](https://github.com/bitnami/bitnami-docker-postgresql/blob/12.5.0-debian-10-r61/12/debian-10/Dockerfile)
+* [`12`, `12-debian-10`, `12.5.0`, `12.5.0-debian-10-r62` (12/debian-10/Dockerfile)](https://github.com/bitnami/bitnami-docker-postgresql/blob/12.5.0-debian-10-r62/12/debian-10/Dockerfile)
 * [`11`, `11-debian-10`, `11.10.0`, `11.10.0-debian-10-r63`, `latest` (11/debian-10/Dockerfile)](https://github.com/bitnami/bitnami-docker-postgresql/blob/11.10.0-debian-10-r63/11/debian-10/Dockerfile)
 * [`10`, `10-debian-10`, `10.15.0`, `10.15.0-debian-10-r62` (10/debian-10/Dockerfile)](https://github.com/bitnami/bitnami-docker-postgresql/blob/10.15.0-debian-10-r62/10/debian-10/Dockerfile)
 * [`9.6`, `9.6-debian-10`, `9.6.20`, `9.6.20-debian-10-r61` (9.6/debian-10/Dockerfile)](https://github.com/bitnami/bitnami-docker-postgresql/blob/9.6.20-debian-10-r61/9.6/debian-10/Dockerfile)