As an important and indispensable organization in economic society, public institutions play an important role in economic and social development. Reforming the income distribution system of public institutions is an important part of deepening the reform of public institutions and promoting the development of public utilities. With the establishment of the socialist market economic system and the deepening of various system reforms in China, the problems in the wage and income distribution system of public institutions need to be paid attention to and solved. At the same time, the reform of wage distribution system is directly related to people's vital interests and directly affects the adjustment of social income distribution pattern in local, departmental and unit areas. It is a highly policy-oriented, wide-ranging and difficult work. The smooth implementation and promotion of this complex system project will help to straighten out the relationship between income distribution, standardize the order of income distribution, and further mobilize the enthusiasm and ownership of staff. Motivation and creativity play a key role in building a well-off society and a harmonious society in an all-round way.