ByteDance workers to lose ‘lucky money’ benefits from 2026 but get improved medical benefits
ByteDance, the parent company of TikTok and Douyin, will end the Lunar New Year tradition of giving workers red packets from 2026, but will expand medical insurance for workers, according to an internal letter sent to workers on Friday and seen in southern China. Morning post.
The change is to address the distinction between “incentives” and “welfare,” according to the letter.
The Red Packet or “Lucky Money” tradition started in 2017 and became a universal benefit for all BitDance employees. The Beijing-based company still prepares them this year, for each employee from hundreds to thousands of yuan during the stay.
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ByteDance did not immediately respond to a request for comment.
Meanwhile, the company has introduced measures to increase incentives for high-performing employees, as noted separately. Incentive plan Released in January 2024.
The logo of Duyin, the Chinese equivalent of Tik Tok, is seen on the ByteDance office building in Beijing, Jan. 18, 2025. January 18, 2025 Photo: EPA-EFE>
The new benefits package includes improved medical insurance, access to premium medical care at regular public hospitals, as well as higher reimbursement rates and better dental care, including 300 yuan (US$40) for dental cleanings. Employees can get a free flu shot for their children.
It adds benefits to the existing package that covered basic dental and pediatric insurance.
The new ByteDance benefits include partial coverage for outdoor gym memberships and transfer of healthy snacks — like nuts, fruit and yogurt — depending on the office location.
As for holiday gifts, the company will continue its tradition of providing gift boxes for employee anniversaries and Lunar New Year, but will stop giving gifts for Dragon Boat and Mid-Autumn Festivals. The 2025 Lunar New Year gift box, which shipped in December, included items such as a calendar and an Insta360 Flow Pro smartphone stabilizer.
China’s tech industry, once driven by high wages, is adjusting compensatory strategies as growth slows. Human resources experts and several ByteDance employees told the Post that enhanced medical insurance benefits are more practical and valuable than gift boxes.