Microsoft to Increase Microsoft 365 Subscription Prices Worldwide by July 2026, Citing AI and Security Enhancements
Microsoft has announced that pricing for its Microsoft 365 productivity suites will increase globally, effective July 21, 2026. The price adjustments will impact commercial businesses, frontline-worker plans, and government clients across markets.
Small Business and Frontline Plans Face the Biggest Increases
Microsoft stated that lower-tier offerings, such as small business and frontline-worker plans, will see the steepest hikes:
- Microsoft 365 Business Basic: rises 16.7%, from $6 to $7 per user/month
- Microsoft 365 Business Standard: increases 12%, rising to $14 per user/month
Frontline worker subscriptions will experience even sharper adjustments:
- Microsoft 365 F1: increases by 33%
- Microsoft 365 F3: goes up from $8 to $10 per user/month
Modest Price Adjustments for Enterprise Customers
Enterprise plans will rise more gradually:
- Microsoft 365 E3: increases 8.3%, reaching $39 per user/month
- Microsoft 365 E5: rises 5.3%, to $60 per user/month
Government customers will see similar percentage increases, with regional pricing adapted to local requirements and regulations.
Microsoft Cites 1,100+ New Features Driving Price Changes
Microsoft said the global price update reflects the company’s ongoing investment in innovation, having added more than 1,100 new features across the Microsoft 365 ecosystem. These include advancements in AI, security, productivity, and management capabilities.
AI Enhancements: Copilot Chat Now Embedded Across Core Apps
A major upgrade driving the pricing change is the integration of Microsoft 365 Copilot Chat, a unified, AI-powered assistant now built directly into apps such as:
- Word
- Excel
- PowerPoint
- Outlook
- OneNote
This feature enables users to draft documents, summarise emails, analyse data, generate insights, and perform tasks through natural language prompts.
Stronger Security and IT Management Capabilities
Microsoft is also rolling out improved threat protection tools, including:
- Advanced email filtering
- Enhanced URL safety checks in Office apps
- Strengthened endpoint management through Microsoft Intune
- Remote help capabilities
- Deeper analytics and unified device management tools
These upgrades aim to give IT teams more visibility, control, and automated security capabilities across organisational devices.
Security Copilot Boosts Proactive Threat Detection
Enterprises will gain additional protection through Microsoft Security Copilot, which assists in deploying security agents, identifying threats, and mitigating risks across collaboration tools, email, and endpoint devices.
Preparing Businesses for AI-Driven, Hybrid Work
Microsoft emphasised that the updates are essential as organisations continue embracing hybrid work models, expanded digital collaboration, and AI-supported workflows. The company said the pricing overhaul aligns with the growing complexity of modern work and the rising demand for integrated security and intelligence tools.
