Abstract: The rational and effective distribution system is not only an important embodiment of fairness and justice, but also economic development and an important guarantee for social stability. In recent years, as an important market players in the state-owned enterprises in the design and implementation of distribution system and there exist many unsuited to market competition. State-owned enterprises should adapt to the reality of market competition, the need to establish the contribution is proportional to the employees and labor income distribution mechanism, perfect for operators, regulators of income incentive and restraint mechanisms, build a scientific and rational, fair and equitable allocation system.