Microsoft will increase prices for its Microsoft 365 productivity suites globally starting in July 2026.
Microsoft plans to raise prices for its Microsoft 365 productivity suites worldwide, effective July 2026, targeting commercial and government customers. The announcement was made on Thursday.
This decision follows increasing rivalry from Google’s offerings, impacting businesses and public sector organizations. Small businesses and frontline worker plans will experience the most significant boosts.
- Microsoft 365 Business Basic: Up 16.7% to $7 per user per month.
- Business Standard: Up 12% to $14 per user per month.
- Enterprise plans: E3 rises 8.3% to
- 60.
- Frontline worker subscriptions: F1 jumps 33% from
3, and F3 goes from
- 10.
- Government suites: Similar adjustments, rolled out based on local rules.
Microsoft attributes the changes to over 1,100 new features added to Microsoft 365, such as AI-enhanced productivity tools and advanced security integrations. The company is also advancing AI-driven solutions, with Copilot available as a $30 monthly add-on and new packages for small and medium enterprises.
This marks Microsoft’s first major commercial Office price increase since 2022, following a hike in consumer subscription rates earlier this year for the first time in over a decade.
Author: Kritika Lamba (Reuters)
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