ByteDance, the parent company of TikTok and Douyin, will end the Lunar New Year tradition of giving red packets to employees from 2026, but will expand medical insurance for staff, according to an internal letter sent to employees on Friday and seen by the South China Morning Post.
The change is meant to sort out differences between “incentives” and “welfare”, according to the letter.
The red packet, or “lucky money”, tradition started 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 based on tenure.
ByteDance did not immediately respond to a request for comment.
The new benefits package includes improved medical insurance, with access to premium medical care in regular public hospitals, as well as higher reimbursement rates and better dental care, including 300 yuan (US$40) for teeth cleaning. Staff can also get free flu vaccinations for their children.
