Labor elements participating in distribution according to contribution is an important component in the initial distribution. On the basis of sorting out and analyzing the current situation and positive effects of China's current wage distribution system policies, this study explores four outstanding problems yet to be solved in the fi eld of wage distribution, including the declining proportion of labor remuneration over a period of time, the lower wage income of rural residents compared with that of urban residents, the relatively large regional wage income gap of rural residents, and the wage income gap between industries to be further reduced. The study argues that to improve the system and mechanism for the distribution of labor force factors based on contribution and participation, we should adhere to the principle of combining reform with development, and put equal emphasis on making the pie bigger and dividing it properly through reasonable institutional arrangements. The research suggests that to promote economic growth in tandem with the growth of residents' incomes, we should achieve a simultaneous increase in labor productivity and labor remuneration. Moreover, we should also deepen the reform of the wage distribution system,improving the wage determination and rational adjustment mechanism.