Compared with enterprises and institutions, institutions are not for profit, but branches of some national institutions. Generally speaking, it is a social organization whose direct purpose is to improve social welfare, meet the needs of social culture, education, science and health, and provide various social services.

The Regulations on Personnel Management of Public Institutions promulgated by the State Council came into effect on July 20 1 year 14. The regulations point out that in terms of wages, welfare and social insurance, the state has established a wage system for public institutions that combines incentives and constraints. The salary of staff in public institutions includes basic salary, performance salary and allowance. The biggest change after the implementation of the regulations is to define public institutions and employees as "contractual relationship", break the lifelong system and realize that people can enter and leave.