Since the 21st century, the reform of China's income distribution system has undergone development and innovation from "centralization" to "decentralization". Before 2015, the relevant measures for the reform of the income distribution system in different regions exhibited characteristics of centering on labor relations and relying on government aids and non-market means in the path. Such “centralized” institutional arrangements encountered diffi culty in properly addressing the dialectical relationship between short-term results and long-term sustainability, wage inclusion and incentives, and the relative impairment of benefi ts to some groups and more vulnerable groups, and there is a potential risk of shifting contradictions to the government. The study argues that, in the design of the "decentralization" of the reform of the income distribution system, it is necessary to take into account vitality, endurance, and fi nitude. On the one hand, on the basis of the principles of co-creation, sharing and co-governance, the market and the positioning of the government and labor and management should be determined; On the other hand, the horizontal and vertical mobility of the labor force should be activated, whilst the distribution of labor should be improved on the basis of the implementation of equal opportunities.