The price adjustments will impact businesses and public sector agencies, with small business and frontline worker plans seeing the largest increases. Microsoft 365 Business Basic will rise 16.7% to $7 per user per month, while Business Standard will increase 12% to $14. Enterprise plans will see more modest hikes, with Microsoft 365 E3 rising 8.3% to $39 and E5 up 5.3% to $60.
Frontline worker subscriptions will experience the steepest surges, with Microsoft 365 F1 moving from $2.25 to $3 and F3 increasing from $8 to $10. Government clients will see similar increases, which will be phased in according to local regulations.
Microsoft said the price changes reflect the addition of more than 1,100 new features across Microsoft 365, including AI-powered productivity tools and integrated security enhancements. The company is also expanding its AI offerings, such as the Copilot tool, available as a $30-per-month add-on, alongside new bundles for small and medium-sized businesses.
This update follows Microsoft’s last commercial Office price increase in 2022 and the first consumer subscription rate hike in over a decade earlier this year.