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Set Your Organizations Password Policy in Microsoft 365

Setting a password policy in Microsoft 365 helps keep your organization secure by controlling how passwords are created and when they expire. In this article, ill show you the basic password policies and how to change them.

Default Password Policy Settings for Cloud Only accounts

Section titled “Default Password Policy Settings for Cloud Only accounts”

The default settings for Microsoft 365 accounts.

  • Minimum length: 8 characters
  • Maximum length: 256 characters
  • Complexity required:
    • 3 of the following 4:
    • Uppercase letters (A–Z)
    • Lowercase letters (a–z)
      • Numbers (0–9)
      • Symbols (!, $, #, etc.)
  • Password history: Last password cannot be reused immediately
  • Password expiration: 90 days (by default)
  • Password expiration notification: 14 days before expiry
  1. Log into the Microsoft 365 Admin Center

  2. On the left, go to Settings > Org Settings

    org settings

  3. Select the Security & privacy tab, then go to Password expiration policy

    security & privacy

  4. Here you can choose whether passwords never expire or set how many days they last. Pick the option you want, then click save.

    set password policy

Password complexity is enabled by default for cloud accounts and you cannot disable or customize the settings.

Microsoft enforces 8 character minimum for passwords and you cannot change this setting.

  1. Sign into the Entra Admin Center

  2. Go to Entra ID > Authentication methods

    authentication methods

  3. Go to Password Protection under the manage tab.

    password protection

  4. From here you can change the lockout threshold. Click save when done

    set lockout threshold

  1. Sign into the Entra Admin Center

  2. Go to Entra ID > Authentication methods

    authentication methods

  3. Go to Password Protection under the manage tab.

    password protection

  4. You can change the lockout duration here, select save when done.

    set lockout duration