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Microsoft 365 Pricing and Packaging Updates from 1 July 2026

28 Apr 2026

Microsoft has officially announced pricing updates for Microsoft 365 commercial plans, effective 1 July 2026. Rather than a blanket increase, this update introduces different adjustment levels across product categories, depending on plan type and target user group.

Below is a high-level breakdown to help organisations quickly understand the scope and impact—without going into SKU-by-SKU detail.

Enterprise Plans

Designed for mid-to-large enterprises with advanced security, compliance, and management needs.

  • Microsoft 365 / Office 365 E3
    ➝ Approximately 8%–14% increase
  • Microsoft 365 / Office 365 E5
    ➝ Approximately 5%–10% increase

 

Overall, E5 sees a more modest uplift compared to E3, reflecting Microsoft’s continued strategy of consolidating advanced security and management capabilities within higher-tier plans.

Business Plans (SMB)

Best suited for small to mid-sized businesses and growing organisations.

  • Microsoft 365 Business Basic / Standard
    ➝ Approximately 12%–16% increase
  • Business Premium
    ➝ No price change

 

Business Premium remains one of the few plans with frozen pricing, making it a strong option for SMBs that require built-in security and device management.

Frontline Worker Plans

Targeted at retail, logistics, manufacturing, healthcare, and other frontline environments.

  • Microsoft 365 F1 / F3 (with Teams)
    ➝ Approximately 25%–33% increase
  • No-Teams versions
    ➝ Increases of up to 29%–43%

 

Frontline licences experience some of the most noticeable adjustments in this update. Organisations are encouraged to review licence allocation and actual usage carefully.

Standalone Components

Including security, management, and productivity add-ons.

  • Windows Enterprise, EMS, Apps for Business, and similar components
    ➝ Approximately 13%–31% increase
  • Selected offerings (e.g. Purview or Defender suites)
    No price change

 

Not all standalone components are affected. The actual impact depends on your licence mix and configuration.

Need Support?

Existing customers

If you have questions about renewals or pricing changes, please contact your dedicated Account Manager.

 

New customers

Looking for the most suitable Microsoft 365 licensing strategy for your organisation?
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