ByteDance, the parent company of TikTok and Douyin, will stop distributing red packets or “lucky money” to employees during Lunar New Year starting in 2026.

This practice, which began in 2017, provided amounts ranging from hundreds to thousands of yuan based on tenure.

The company said this change aims to distinguish “incentives” from “welfare,” but will distribute red packets one last time in 2025.

Instead of red packets, ByteDance is enhancing its employee benefits, including improved medical insurance, access to premium care in public hospitals, and better reimbursement rates.

The upgraded dental benefits include a 300 yuan (US$40) allocation for teeth cleaning. Additionally, employees’ children will receive free flu vaccinations.

The company did not immediately respond to requests for comment on these changes.