ByteDance, the guardian firm of TikTok and Douyin, will finish the Lunar New 12 months custom of giving crimson packets to workers from 2026, however will develop medical insurance coverage for employees, based on an inside letter despatched to workers on Friday and seen by the South China Morning Publish.
The change is supposed to type out variations between “incentives” and “welfare”, based on the letter.
The crimson packet, or “fortunate cash”, custom began in 2017 and have become a common perk for all ByteDance workers. The Beijing-based firm will nonetheless problem them this yr, in quantities starting from tons of to 1000’s of yuan for every worker primarily based on tenure.
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ByteDance didn’t instantly reply to a request for remark.
In the meantime, the corporate has launched measures to extend incentives for high-performance workers, with year-end bonuses which will embrace each money and inventory choices, as outlined in a separate incentive plan launched in January 2024.
The Douyin emblem, the Chinese language counterpart of TikTok, seen on a ByteDance workplace constructing in Beijing, January 18, 2025. Picture: EPA-EFE alt=The Douyin emblem, the Chinese language counterpart of TikTok, seen on a ByteDance workplace constructing in Beijing, January 18, 2025. Picture: EPA-EFE>
The brand new advantages package deal consists of improved medical insurance coverage, with entry to premium medical care in common public hospitals, in addition to larger reimbursement charges and higher dental care, together with 300 yuan (US$40) for tooth cleansing. Employees can even get free flu vaccinations for his or her kids.
It provides advantages to the earlier package deal that lined fundamental dental insurance coverage and youngster medical insurance coverage.
The brand new ByteDance advantages additionally embrace partial protection for exterior fitness center memberships, and a shift in direction of providing more healthy snacks – corresponding to nuts, fruit and yogurt – relying on the placement of the workplace.
Relating to festive presents, the corporate will proceed its custom of providing present packing containers for worker anniversaries and the Lunar New 12 months however will cease handing out presents for the Dragon Boat and Mid-Autumn festivals. The 2025 Lunar New 12 months present field, despatched out in December, included objects like a calendar and an Insta360 Circulation Professional smartphone stabiliser.
China’s tech trade, as soon as pushed by excessive salaries, has been adjusting compensation methods amid slowing progress. Human assets specialists and several other ByteDance workers instructed the Publish that the improved medical insurance coverage advantages are much more sensible and valued than the present packing containers.
