ByteDance, the parent company of TikTok and Douyin, will end the Lunar Recent 12 months tradition of giving red packets to employees from 2026, but will expand medical insurance for employees, in line with an internal letter sent to employees on Friday and seen by the South China Morning Post.
The change is supposed to sort out differences between “incentives” and “welfare”, in line with the letter.
The red packet, or “lucky money”, tradition began in 2017 and have become a universal perk for all ByteDance employees. The Beijing-based company will still issue them this 12 months, in amounts starting from a whole bunch to 1000’s of yuan for every worker based on tenure.
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ByteDance didn’t immediately reply to a request for comment.
Meanwhile, the corporate has introduced measures to extend incentives for high-performance employees, with year-end bonuses that will include each money and stock options, as outlined in a separate incentive plan released in January 2024.
The Douyin logo, the Chinese counterpart of TikTok, seen on a ByteDance office constructing in Beijing, January 18, 2025. Photo: EPA-EFE alt=The Douyin logo, the Chinese counterpart of TikTok, seen on a ByteDance office constructing in Beijing, January 18, 2025. Photo: EPA-EFE>
The brand new advantages package includes improved medical insurance, with access to premium medical care in regular public hospitals, in addition to higher reimbursement rates and higher dental care, including 300 yuan (US$40) for teeth cleansing. Staff may get free flu vaccinations for his or her children.
It adds advantages to the previous package that covered basic dental insurance and child medical insurance.
The brand new ByteDance advantages also include partial coverage for external gym memberships, and a shift towards offering healthier snacks – resembling nuts, fruit and yogurt – depending on the placement of the office.
Regarding festive gifts, the corporate will proceed its tradition of offering gift boxes for worker anniversaries and the Lunar Recent 12 months but will stop handing out gifts for the Dragon Boat and Mid-Autumn festivals. The 2025 Lunar Recent 12 months gift box, sent out in December, included items like a calendar and an Insta360 Flow Pro smartphone stabiliser.
China’s tech industry, once driven by high salaries, has been adjusting compensation strategies amid slowing growth. Human resources experts and several other ByteDance employees told the Post that the improved medical insurance advantages are way more practical and valued than the gift boxes.