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ByteDance, the parent company of TikTok and Douyin, will end the Lunar New Year tradition of giving red packets to employees starting in 2026, but will extend health insurance for staff, according to an internal letter sent to employees and view of southern China. morning post
The change is intended to address the differences between “incentives” and “welfare,” according to the letter.
The tradition of the red packet, or “lucky money,” began in 2017 and became a universal perk for all ByteDance employees. The Beijing-based company will still issue them this year, in amounts ranging from hundreds to thousands of yuan for each employee depending on tenure.
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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, with year-end bonuses that can include both cash and stock options, as described in a separate filing. incentive plan launched in January 2024.
The logo of Douyin, the Chinese counterpart of TikTok, seen on a ByteDance office building in Beijing, January 18, 2025. Photo: EPA-EFE alt=The logo of Douyin, the Chinese counterpart of TikTok, seen in a ByteDance office building in Beijing, January 18, 2025. Photo: EPA-EFE>
The new benefits package includes improved health insurance, with 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 teeth cleaning . Staff can also receive free flu shots for their children.
It adds benefits to the previous package that covered basic dental insurance and children’s health insurance.
ByteDance’s new benefits also include partial coverage for outside gym memberships and a shift toward offering healthier snacks, such as nuts, fruit and yogurt, depending on office location.
As for holiday gifts, the company will continue its tradition of offering gift boxes for employee birthdays and Lunar New Year but will stop handing out gifts for the Dragon Boat and Mid-Autumn Festivals. The Lunar New Year 2025 gift box, sent in December, included items such as a calendar and an Insta360 Flow Pro smartphone stabilizer.
China’s technology industry, once driven by high salaries, has been adjusting compensation strategies amid slowing growth. Human resources experts and several ByteDance employees told the Post that the enhanced health insurance benefits are much more practical and valued than the gift boxes.
