On July 1st, 2014, relevant person-in-charge of Ministry of Human Resources and Social Security said that theRegulations on Personnel Management of Public Institutions merely set principles regarding the wage system and endowment insurance system for public institutions. As for the reform on wage system and endowment insurance system, it still needs to be determined by additional study.

On this ground, despite that the Regulations on Personnel Management of Public Institutions comes into effect on July 1st, 2014, it does not mean that reform on wage system and endowment insurance system for public institutions have been implemented simultaneously and immediately. Specific reform measures of wage system and endowment insurance system still needs to be formulated separately.

KWM Comment: Reform of public institutions involves more than 30 million staff members in the nationwide scale. TheRegulations on Personnel Management of Public Institutions provide some fundamental principles on the reform, but it should not be over-interpreted when it comes to specific measures.