Microsoft has confirmed a global revision of its Microsoft 365 subscription prices, set to take effect on July 21, 2026. The changes will impact commercial organisations, frontline-worker plans, and government users.
Small Business and Frontline Worker Plans to See the Highest Increases
Microsoft said the most significant adjustments will apply to lower-tier and frontline plans:
- Microsoft 365 Business Basic will climb 16.7%, moving from $6 to $7 per user per month.
- Microsoft 365 Business Standard will rise 12%, increasing to $14 per user per month.
Frontline-worker subscriptions will undergo even sharper adjustments:
- Microsoft 365 F1 will rise by 33%.
- Microsoft 365 F3 will increase from $8 to $10 per user per month.
Moderate Price Changes for Enterprise Plans
Enterprise subscriptions will experience more gradual increases:
- Microsoft 365 E3 will go up 8.3%, reaching $39 per user each month.
- Microsoft 365 E5 will increase 5.3%, to $60 per user per month.
Government users will face similar revisions, with region-specific pricing aligned to local regulations.
Price Review Driven by Over 1,100 New Features
Microsoft explained that the price adjustment reflects the extensive enhancements delivered across Microsoft 365 in recent years, amounting to more than 1,100 added features. These improvements span AI innovation, reinforced security, productivity tools, and device-management capabilities.
AI Upgrades: Copilot Chat Now Embedded Across Microsoft Apps
A key highlight is the integration of Microsoft 365 Copilot Chat, an AI-powered interface built directly into major applications such as:
- Word
- Excel
- PowerPoint
- Outlook
- OneNote
With Copilot Chat, users can summarise content, draft documents, extract insights, and automate tasks with simple natural-language prompts.
Enhanced Security Tools and IT Management Features
Microsoft is also expanding its security and endpoint-management suite with updates including:
- Stronger email protection
- Advanced URL-scanning to block malicious links
- Improved Intune device management
- Analytics-driven insights
- Remote assistance tools
These additions aim to give IT administrators more control over security, compliance, and device ecosystems.
Security Copilot to Strengthen Threat Detection
The rollout also includes Microsoft Security Copilot, designed to deploy security agents efficiently, detect emerging threats, and mitigate risks across emails, collaboration platforms, and device endpoints.
Supporting Organisations in a Hybrid and AI-Powered Work Era
According to Microsoft, the pricing updates reflect the company’s commitment to supporting evolving workplace needs as businesses lean further into hybrid operations, AI-driven workflows, and secure digital collaboration. The company maintains that the new features and protections justify the updated pricing structure.
