Instructions applies to Debian but should be similar on other distributions.
Firstly you need to install PAM module capable of Blowfish, install libpam-unix2:
apt-get install libpam-unix2
Then change PAM configuration in /etc/pam.d:
/etc/pam.d/common-account change:
account required pam_unix.so
to:
account required pam_unix2.so
/etc/pam.d/common-auth change:
auth required pam_unix.so nullok_secure
to:
auth required pam_unix2.so nullok
/etc/pam.d/common-password change:
password required pam_unix.so nullok obscure min=4 max=8 md5
to:
password required pam_unix2.so nullok obscure min=4 max=8 blowfish
/etc/pam.d/common-session change:
session required pam_unix.so
to:
session required pam_unix2.so
⚠️ This is basic configuration, if you have custom configuration (e.g. for fingerprint reader or some servers) don’t forget to change it accordingly.
From now on passwords will be hashed with blowfish, run passwd to rehash your password. Existing passwords are still valid.