License & Subscription Issues

Microsoft 365 E5 Audit Retention Requirements: Do All Users Need Licenses?

Algirdas Jasaitis Oct 1, 2026 869 views

Question details

An organization needs to determine if purchasing a Microsoft 365 E5 license for only the global admin account covers tenant-wide audit log searches and retention for over six months.

Microsoft 365 E5 Compliance License and Audit Retention Requirements

Product: Microsoft 365
Device & OS: not provided
Scenario: Configuring long-term audit retention policies and managing enterprise compliance licenses for a Microsoft 365 tenant.
Observed behavior: Clarification is needed on whether one E5 license extends long-term audit data retention (beyond 180 days) to all users across the organization's tenant or if individual licenses are required.

Before you start

Ensure you have global admin or compliance administrator privileges in your Microsoft 365 Admin Center to view current licensing assignments and audit retention policies.

Solution 1Recommended

Assign Appropriate M365 E5 Licenses to Required Users

To retain audit logs for more than six months (up to one year or longer), each specific user generating the audit data must have an eligible E5 license.

Licensing only the global admin account does not grant tenant-wide long-term audit retention. The Microsoft licensing model is user-based, meaning the advanced retention policy applies only to users who are individually licensed for advanced auditing features.

Verify Current Licensing

Log in to the Microsoft 365 Admin Center, navigate to Billing in the left sidebar, and select Licenses to check your available M365 E5 or E5 Compliance add-on licenses.

Assign Licenses to Users

Go to Users > Active users. Select the users whose audit logs need to be retained for over 180 days, click on 'Licenses and apps', and assign them the Microsoft 365 E5, Office 365 E5, or E5 Compliance license.

Configure Audit Retention Policies

Access the Microsoft Purview compliance portal. Navigate to the Audit section and set up your audit log retention policies to specify the extended retention duration (e.g., 1 year) for the newly licensed users.

Assign Appropriate M365 E5 Licenses to Required Users

Standard Retention Period: Audit records for users without an eligible advanced compliance license are generally retained for a default period of 180 days.

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Frequently Asked Questions

Can I buy just one E5 license to search all tenant audit logs?

No. While having one E5 license might unlock the advanced eDiscovery and auditing interface for the administrator, the actual retention of audit logs beyond 180 days requires every targeted user to be individually licensed with an eligible E5 or compliance add-on.

How long are Microsoft 365 audit logs kept for users without an E5 license?

For users with lower-tier licenses, such as Microsoft 365 E3, Business Premium, or Business Standard, audit records are generally retained for 180 days by default.

Which specific licenses provide advanced audit retention capabilities?

Eligible licenses include Microsoft 365 E5, Office 365 E5, Microsoft 365 E5 Compliance, and specific eDiscovery and Audit add-on licenses. Since Microsoft frequently updates their licensing terms, you should verify the current requirements in the official Microsoft Purview documentation.

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