Does nextcloud encryption protect users data against intruders?

I am hosting a nextcloud instance for my family. I have made sure to follow best practices for ssh, https etc. But I still want to really make sure that if an intruder gets access to my server, he should not be able to access user files.

So does nextcloud encryption module provide that functionality? Can the admin view users file if encryption is enabled? I want something like the type of encryption mega uses, where encryption/decryption happens on user device.

I would be thankful if someone can guide me to the correct approach.