ByteDance, the parent company of TikTok, is making significant changes to its employee benefits package starting from 2026. The company will discontinue its ‘lucky money’ tradition and introduce improved medical insurance benefits, including access to premium medical care in regular public hospitals.
ByteDance Ends ‘Lucky Money‘ Tradition, Expands Medical Benefits for Employees
In a move to redefine its benefits package, ByteDance has announced that it will discontinue the practice of giving red packets, or “lucky money,” to employees from 2026 onwards. However, the company is introducing improved medical insurance benefits, which include access to premium medical care in regular public hospitals.
Red Packet Tradition Comes to an End
The red packet tradition was introduced by ByteDance in 2017 and has since become a universal perk for all employees. The amounts given to each employee have varied from hundreds to thousands of yuan, depending on their tenure. While the company will still issue red packets this year, it is clear that the practice is being phased out.
Enhanced Medical Insurance Benefits
The new benefits package includes improved medical insurance, which provides access to premium medical care in regular public hospitals. This means that employees can receive better treatment for themselves and their families at a lower cost. Additionally, the company has increased reimbursement rates and introduced better dental care, including 300 yuan (US$40) for teeth cleaning.
Other Benefits
The new benefits package also includes partial coverage for external gym memberships and a shift towards offering healthier snacks in the office, such as nuts, fruit, and yogurt. Furthermore, staff can receive free flu vaccinations for their children.
Reaction from Employees and Experts
Human resources experts and several ByteDance employees have spoken out about the enhanced medical insurance benefits being more practical and valued than the gift boxes. This move is seen as a response to China’s tech industry adjusting its compensation strategies amid slowing growth.
ByteDance’s Growing Presence in the Tech Industry
As ByteDance continues to navigate the complex world of technology, it remains to be seen how this change will impact the company’s operations and employee morale. With TikTok facing potential shutdowns and deal-making, it is clear that ByteDance is adapting to changing circumstances.
Sources:
This article was originally published in the South China Morning Post (SCMP), a leading source of news on China and Asia for over a century. For more stories like this, please explore the SCMP app or visit their Facebook and Twitter pages.
