diff --git a/.Rbuildignore b/.Rbuildignore
index 9677808..4026956 100644
--- a/.Rbuildignore
+++ b/.Rbuildignore
@@ -10,3 +10,4 @@ TEMP/
 ^data-raw$
 CONTRIBUTING.md
 ^cran-comments\.md$
+^codecov\.yml$
diff --git a/.github/workflows/test-coverage.yaml b/.github/workflows/test-coverage.yaml
index 3c0da1c..4b65418 100644
--- a/.github/workflows/test-coverage.yaml
+++ b/.github/workflows/test-coverage.yaml
@@ -1,4 +1,4 @@
-# Workflow derived from https://github.com/r-lib/actions/tree/master/examples
+# Workflow derived from https://github.com/r-lib/actions/tree/v2/examples
 # Need help debugging build failures? Start at https://github.com/r-lib/actions#where-to-find-help
 on:
   push:
@@ -17,14 +17,15 @@ jobs:
     steps:
       - uses: actions/checkout@v2
 
-      - uses: r-lib/actions/setup-r@v1
+      - uses: r-lib/actions/setup-r@v2
         with:
           use-public-rspm: true
 
-      - uses: r-lib/actions/setup-r-dependencies@v1
+      - uses: r-lib/actions/setup-r-dependencies@v2
         with:
-          extra-packages: covr
+          extra-packages: any::covr
+          needs: coverage
 
       - name: Test coverage
-        run: covr::codecov()
+        run: covr::codecov(quiet = FALSE)
         shell: Rscript {0}
diff --git a/README.Rmd b/README.Rmd
index 1a267ed..728c7b8 100644
--- a/README.Rmd
+++ b/README.Rmd
@@ -20,6 +20,7 @@ knitr::opts_chunk$set(
 [![test-coverage](https://github.com/worldbank/pipr/workflows/test-coverage/badge.svg)](https://github.com/worldbank/pipr/actions)
 [![pkgdown](https://github.com/worldbank/pipr/workflows/pkgdown/badge.svg)](https://github.com/worldbank/pipr/actions)
 [![Lifecycle: experimental](https://img.shields.io/badge/lifecycle-experimental-orange.svg)](https://lifecycle.r-lib.org/articles/stages.html#experimental)
+[![Codecov test coverage](https://codecov.io/gh/worldbank/pipr/branch/main/graph/badge.svg)](https://app.codecov.io/gh/worldbank/pipr?branch=main)
 <!-- badges: end -->
 
 The `pipr` package allows R users to compute poverty and inequality indicators for more than 160 countries and regions from the World Bank’s database of household surveys.
diff --git a/codecov.yml b/codecov.yml
new file mode 100644
index 0000000..04c5585
--- /dev/null
+++ b/codecov.yml
@@ -0,0 +1,14 @@
+comment: false
+
+coverage:
+  status:
+    project:
+      default:
+        target: auto
+        threshold: 1%
+        informational: true
+    patch:
+      default:
+        target: auto
+        threshold: 1%
+        informational: true