ByteDance to end ‘lucky money’ perk by 2026

By Phong Ngo January 25, 2025 | 03:25 pm PT

The TikTok logo is pictured outside the company's U.S. head office in Culver City, California, U.S., Sept. 15, 2020. Photo by Reuters/Mike Blake

ByteDance, the parent company of TikTok and Douyin, will discontinue its Lunar New Year “lucky money” tradition for employees starting in 2026 but plans to enhance their medical insurance cover.

According to an internal letter sent to staff on Friday, the change aims to distinguish between "incentives" and "welfare," the South China Morning Post reported.

The "lucky money" practice, introduced in 2017, provided employees with amounts ranging from hundreds to thousands of yuan (100 yuan = US$14) based on service length.

ByteDance did not immediately respond to requests for comment.

To compensate for the change, ByteDance has increased incentives for high-performing employees through year-end bonuses that may include cash and stock options, as detailed in a January 2024 incentive plan.

The updated benefits package includes enhanced medical insurance, including coverage for employees’ children.

Other perks include partial subsidies for gym memberships and healthier snack options tailored to office locations.

Festive gifts such as employee anniversary and Lunar New Year gift boxes will remain, though gifts for the Dragon Boat and Mid-Autumn festivals will be discontinued.

China’s tech industry, once reliant on high salaries, has been adjusting compensation structures amid slowing growth.