Microsoft 365 to get costlier as company adds new features
05 Dec 2025

Microsoft has announced a global price hike for its Microsoft 365 productivity suites, starting July 2026.

The increase will affect commercial and government clients alike, according to the company.

The move is attributed to the addition of over 1,100 new features, including artificial intelligence (AI)-driven productivity tools and integrated security enhancements.

Price hike details and impact
Affected plans

The price hike will affect businesses and public sector agencies, with small business and frontline worker plans seeing the biggest increases.

Microsoft 365 Business Basic will go up by 16.7% to $7 per user/month, while Business Standard will increase by 12% to $14.

Enterprise plans will see smaller jumps, with Microsoft 365 E3 up by 8.3% at $39 and E5 up by 5.3% at $60.

Frontline worker subscriptions to see highest increase
Subscription surge

Subscriptions for frontline workers will see a major increase, with Microsoft 365 F1 going up from $2.25 to $3 and F3 from $8 to $10.

Government suites will also follow this trend, with changes being phased in according to local regulations.

The company said these changes reflect over 1,100 new features added across Microsoft 365, including AI-driven productivity tools and integrated security enhancements.

Microsoft's AI-powered productivity push and past price hikes
Strategic shift

The update comes as Microsoft is pushing deeper into AI-powered productivity, offering Copilot as a $30-per-month add-on and new bundles for small and medium businesses.

This isn't the first time Microsoft has raised prices. The company last increased commercial Office prices in 2022, and earlier this year it hiked consumer subscription rates for the first time in over a decade.