On Thursday (local time), Microsoft made an announcement stating that, effective July 1, 2026, it will implement a subscription price increase for Microsoft 365 targeted at commercial and government customers. This move represents yet another price adjustment, following the one carried out in 2022.

The scope of this adjustment encompasses plans tailored for enterprises, the public sector, and frontline workers. Among them, small businesses and frontline worker packages are set to witness significant price hikes. Specifically, the subscription fee for Microsoft 365 E3 will rise by approximately 8.3%, reaching $39 per user per month. Meanwhile, the price for E5 will go up by around 5.3%, amounting to $60 per user per month.

Frontline worker packages are also affected. The cost of F1 will jump from $2.25 to $3 per user per month, and F3 will increase from $8 to $10 per user per month. These represent increases of 33% and 25%, respectively.

Microsoft explained that this price adjustment is a reflection of the fact that over the past few years, more than 1,100 new features have been integrated into Microsoft 365. These include productivity tools powered by generative AI and enhanced security capabilities, which add significant value to the product.