Microsoft has announced a significant price increase for its Microsoft 365 subscription plans in South Africa, with some plans seeing a hike of up to 46%. This follows a global trend of price adjustments, including the first major increase in the U.S. in over a decade.
Why Are Microsoft 365 Prices Increasing?
In a blog post dated 16 January 2025, Microsoft stated that the price changes are due to the inclusion of Copilot AI and the Designer app in “most” markets. These new AI-driven features are designed to enhance productivity and creativity within the Microsoft 365 suite.
Microsoft has updated its South African pricing, confirming that both Copilot and Designer will be available locally. The price adjustments impact both monthly and annual subscriptions.
New Microsoft 365 Subscription Prices in South Africa
| Plan | Old Monthly Price | New Monthly Price | Old Annual Price | New Annual Price | Percentage Increase |
|---|---|---|---|---|---|
| Microsoft 365 Basic | R39 | R39 | R399 | R399 | No Change |
| Microsoft 365 Personal | R109 | R159 | R1,099 | R1,599 | 45.9% |
| Microsoft 365 Family | R139 | R199 | R1,399 | R1,999 | 43.2% |
The most affected plans are Microsoft 365 Personal and Family, both of which will now cost significantly more. Notably, the new price for Personal is higher than the previous Family plan, making the latter even more expensive.
How Does This Compare to Previous Increases?
The last time Microsoft adjusted pricing for its productivity suite in South Africa was in July 2023. However, the 2025 increase is much steeper, especially considering that Microsoft also increased prices for its Game Pass subscription in mid-2024. The Game Pass Ultimate plan saw a 54.2% jump, while Game Pass Core’s annual plan rose by 66.8%.
When Will the New Prices Take Effect?
Existing subscribers will start paying the higher prices from 18 March 2025, according to emails sent by Microsoft to South African customers. Those who wish to change their subscription or cancel recurring billing must do so at least two days before their next billing date via their Microsoft account settings.
Additionally, reports from customers confirm that the new prices have already been implemented at some physical retail stores in South Africa.
Is There a Way to Avoid the Price Hike?
Customers looking to lock in current prices before the increase may consider purchasing annual subscriptions now before the March 2025 deadline. Alternatively, exploring lower-tier plans such as Microsoft 365 Basic (which remains at R39 per month) may be an option for users who do not need premium features.
Microsoft 365 users in South Africa must now factor in these price hikes when managing their subscriptions. With a 45.9% increase for Personal and 43.2% for Family plans, the cost of essential productivity tools has become significantly higher. Whether these changes justify the addition of AI-driven features like Copilot and Designer will be up to users to decide.
For more updates on tech pricing changes, software trends and industry news, stay tuned.
