Microsoft has announced a global pricing update to Microsoft 365
This affects Enterprise, Business, Frontline, and Government suites, as well as standalone components (excluding Microsoft Teams and Copilot SKUs). The pricing changes will take effect from 1 July 2026, with packaging updates rolling out from June 2026. Existing customers will remain on their current pricing until their next renewal, and will receive at least 30 days’ notice via the Message Center before any packaging changes apply.
Enterprise Suites
With Teams
| Licence | % Increase 1st July 2026 |
|---|---|
| Office 365 E1 | No Change |
| Office 365 E3 | 13% |
| Office 365 E5 | 8% |
| Microsoft 365 E3 | 8% |
| Microsoft 365 E5 | 5% |
Without Teams
| Licence | % Increase 1st July 2026 |
|---|---|
| Office 365 E1 | No Change |
| Office 365 E3 | 13% |
| Office 365 E5 | 8% |
| Microsoft 365 E3 | 8% |
| Microsoft 365 E5 | 5% |
Business suites
With Teams
| Licence | % Increase 1st July 2026 |
|---|---|
| Microsoft 365 Business Basic | 16% |
| Microsoft 365 Business Standard | 12% |
| Microsoft 365 Business Premium | No Change |
Without Teams
| Licence | % Increase 1st July 2026 |
|---|---|
| Microsoft 365 Business Basic (No Teams) | 23% |
| Microsoft 365 Business Standard (No Teams) | 16% |
| Microsoft 365 Business Premium (No Teams) | No Change |
Frontline suites
With Teams
| Licence | % Increase 1st July 2026 |
|---|---|
| Microsoft 365 F1 | 33% |
| Microsoft 365 F3 | 25% |
Without Teams
| Licence | % Increase 1st July 2026 |
|---|---|
| Microsoft 365 F1 (No Teams) | 43% |
| Microsoft 365 F3 (No Teams) | 29% |
Other Standalone Components
| Licence | % Increase 1st July 2026 |
|---|---|
| Microsoft Purview Suite | No Change |
| Windows E3 | 15% |
| Microsoft 365 Apps for Business | 21% |
| Enterprise Mobility + Security (EMS) E3 | 13% |
| Microsoft Entra Plan 1 | 16% |
| Windows Enterprise (Per Device) | 31% |
| Microsoft Defender Suite | No Change |
| Windows E5 | 9% |
| Microsoft 365 Apps | 17% |
| Enterprise Mobility + Security (EMS) E5 | 10% |
| Microsoft Entra Plan 2 | 11% |
| Microsoft 365 Apps (Per Device) | 17% |
What we suggest!
We recommend reviewing your Microsoft 365 environment ahead of the 1 July 2026 price changes to reduce unnecessary costs. This includes removing unused licences, reviewing billing terms for annual discounts and potential price lock-ins, and ensuring Copilot is only assigned where needed due to its high cost.
1. Audit your licences: Identify unused, duplicate, or over-provisioned licences. Many organisations carry 15–20% waste, which can be removed for immediate savings.
2. Review billing terms: Switching from monthly to annual billing can deliver 15–20% savings. Renewing before 1 July may also lock in current pricing for another 12 months.
3. Review Copilot usage: Copilot is not part of the price increase but remains a high-cost add-on (~$44.90/user/month). Ensure it’s only assigned where needed.
4. Prepare before rollout: Review users, governance, and requirements before enabling new services to avoid unnecessary spend.
