"We are making this shift in order to learn about these issues earlier and to increase the win-win between Microsoft's customers and the security researcher community."
The bounty program will launch with three categories of 'wanted' hacker tricks on June 26, the same day Microsoft is to preview a tweaked version of its operating system referred to as Windows Blue but officially called Windows 8.1.
A Mitigation Bypass Bounty will pay up to $100,000 for "truly novel exploitation techniques" targeting Windows 8.1 and as much as $50,000 for ways to defend against hacker attacks that qualify for rewards.
Microsoft said that, for a month, it will pay as much as $11,000 for critical vulnerabilities exposed in the version of Internet Explorer browser software tailored for Windows 8.1.
Details were available online at microsoft.com/bountyprograms.