Microsoft Security | Microsoft Authenticator
A Microsoft app for iOS and Android devices that enables authentication with two-factor verification, phone sign-in, and code generation
Can we add Microsoft 365 E5 Information Protection and Governance license with M365 Business basic or M365 Business Standard license?
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Samuda Weerasooriya
0
Reputation points
Hi all,
We currently have users on Microsoft 365 Business Basic and Business Standard. We want to implement Sensitivity Labels for data classification and protection.
What are the supported options for sensitivity labeling with Business Basic and Business Standard plans?
Which level of labeling/encryption can we apply with these licenses?
Are there specific add-ons we need?
Can we **add the “Microsoft 365 E5 Information Protection and Governance” add-on** to Business Basic or Business Standard users to enable full sensitivity labeling & protection features?
If yes, how does it integrate with existing licenses?
If not, what alternative licensing path should we take?
Microsoft Security | Microsoft Authenticator
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AI answer
2025-12-27T18:16:12.9366667+00:00 Microsoft 365 Business Basic and Business Standard licenses do not include the full capabilities for sensitivity labeling and protection that are available in the Microsoft 365 E5 Information Protection and Governance license. While users with these Business licenses can manually apply sensitivity labels, they may not have access to the more advanced features that come with the E5 license.
You cannot add the Microsoft 365 E5 Information Protection and Governance add-on directly to Business Basic or Business Standard licenses. Instead, if you want to enable full sensitivity labeling and protection features, you would need to consider upgrading to a higher tier license, such as Microsoft 365 E3 or E5.
For sensitivity labeling, the options available with Business Basic and Standard are limited compared to the E5 license, which offers more comprehensive data protection and classification capabilities. If your organization requires advanced labeling and encryption features, transitioning to a higher tier license would be the recommended path.
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