Microsoft 365 Prices to Rise for Commercial, Government Clients
- tech360.tv
- 2 hours ago
- 1 min read
Microsoft will increase prices globally for its Microsoft 365 productivity suites. These adjustments will apply to commercial and government clients starting in July 2026.
Small business and frontline worker plans will experience the largest price increases. Microsoft 365 Business Basic will rise 16.7% to USD 7 per user per month.
Microsoft 365 Business Standard will climb 12% to USD 14. Enterprise plans will see smaller percentage adjustments.
Microsoft 365 E3 will increase 8.3% to USD 39. Microsoft 365 E5 will be up 5.3% to USD 60.
Subscriptions for frontline workers will see significant surges. Microsoft 365 F1 will move from USD 2.25 to USD 3, marking a 33% rise.
Microsoft 365 F3 will increase from USD 8 to USD 10. Government suites will follow a similar pricing trajectory.
Changes for government clients will be phased in according to local regulations. The company stated these adjustments reflect more than 1,100 new features added across Microsoft 365.
These additions include AI-driven productivity tools and integrated security enhancements. The announcement comes as Microsoft pushes deeper into AI-powered productivity offerings.
The company offers Copilot as a USD 30-per-month add-on. New bundles for small, medium businesses have also been introduced.
This move occurs as Microsoft’s suite, which includes Word, Excel, and PowerPoint, faces growing competition from Google’s products. Microsoft last raised commercial Office prices in 2022.
Earlier this year, consumer subscription rates also increased for the first time in over a decade.
Microsoft 365 prices will increase for commercial and government clients.
The price changes are set to begin in July 2026.
Small business and frontline worker plans will see the sharpest increases.
Source: REUTERS