Upcoming Changes: Office 365 G1 Price Increase Effective March 2025

Effective March 1, 2025, the previously announced 5% price increase for Office 365 G1 will take effect. This adjustment is part of Microsoft’s ongoing commitment to delivering innovation, enhanced security, and AI-powered productivity tools to support public sector organizations. 

This update is the final phase of the price increase decision from March 2022, ensuring organizations have access to the latest features while maintaining compliance, scalability, and seamless collaboration. The price increase was previously communicated on January 17, 2023.  

Understanding the Office 365 G1 Price Adjustment 

Microsoft 365 has seen continuous investment and expansion to support the changing needs of organizations. Since the launch of Office 365 over a decade ago, we have introduced more than 1,400 new features and capabilities, including: 

• Microsoft Teams – An all-in-one solution for meetings, chats, calls, and collaboration. 
• AI-Powered Productivity – Enhanced efficiency with automation and smart insights. 
• Advanced Security & Compliance – Protection through Data Loss Prevention (DLP), Office Message Encryption, and eDiscovery. 
• Unlimited Dial-In for Teams – Seamless connectivity across devices. 

To comply with local regulations, the price increase from March 2022 is being rolled out in a phased manner: 

• March 2022: 10% increase 
• March 2023: 10% increase 
• March 2024: 10% increase 
• March 2025: 5% increase (upcoming) 

What’s Changing? 

• The 5% price increase applies to Office 365 G1 plans starting March 1, 2025. 
• All other Office 365 and Microsoft 365 plans remain unchanged at this time. 

How to Prepare 

For partners, IT leaders, and procurement teams in the public sector, we recommend the following best practices to ensure a seamless transition: 

• Review Current Licensing Plans – Assess how the new pricing aligns with your organization’s needs. 
• Communicate with Stakeholders – Ensure leadership and finance teams are informed. 
• Leverage Microsoft Support & Resources – Utilize available documentation, webinars, and dedicated Microsoft support channels for assistance. 

Looking Ahead 

Microsoft remains committed to providing continuous innovation and enhanced value through AI-driven solutions, security enhancements, and collaboration tools that empower public sector organizations. 

For more details, please visit: 

• Microsoft 365 Government Service Descriptions 
• Microsoft 365 Roadmap 

If you have any questions or need further assistance, please don't hesitate to reach out to your Microsoft account team or partner. We truly appreciate your continued trust and partnership. We're here to support you every step of the way and help you make the most of your Microsoft 365 investment.