Microsoft said it will raise prices for its Office productivity suite, Microsoft 365, for corporations and government customers worldwide starting in July 2026. The move is seen as a price adjustment as the productivity suite, which includes Word, Excel and PowerPoint, goes up against Google's competing products.
According to Reuters on the 5th local time, the increase will apply across corporations and public institutions, with plans for small and midsize businesses and frontline (on-site workers) seeing the largest hikes. The Microsoft 365 Business Basic plan will rise 16.7% to $7 per user per month (about 10,320 won), and Business Standard will increase 12% to $14 (about 20,640 won). Enterprise plans will see relatively smaller hikes, with E3 adjusted to $39 (about 57,500 won) and E5 to $60 (about 88,400 won).
Plans for frontline workers will rise by up to 33%, with F1 increasing to $3 (about 4,420 won) and F3 to $10 (about 14,740 won). Government suites will also see phased increases of the same magnitude, in line with each country's regulations.
Microsoft said the price adjustment reflects more than 1,100 new features added across the entire MS365 portfolio, including AI-based productivity tools and integrated security features. The company has recently strengthened its AI productivity strategy, expanding AI-linked services by introducing a $30-per-month Copilot paid option and a new bundle for small and midsize businesses.
Microsoft raised prices for Office products for corporations in 2022 and earlier this year adjusted consumer plan prices for the first time in more than a decade.