Appropriate salary system is an important component of health system to guarantee the attracting and retaining of health workers，improving work performance，and ultimately promoting health care development. Establishing a compensation system that adapts to the characteristics of the health sector is one of the key tasks of China’s health system reform. The main challenges of China’s health personnel compensation system include：low level of salary，excessive difference of income between different types of health personnel，linkage of health personnel income to hospital revenue，and distortion of incentive mechanisms. Since 2009，China’s health system reform has significantly changed the financing mechanism of health facilities through the implementation of zero markup policy and performance-based salary. The connection between health facilities’ income and drug revenue has been cut，therefore their heavy reliance on drug revenue has been changed. Local provinces and counties have actively explored salary reform measures such as optimizing the salary structure of public hospitals，determining the salary level of public hospitals，advancing the salary reform of public hospital directors，improving public hospitals’ autonomy in using surplus of revenue to motivate health staff，and improving the performance evaluation mechanism to promote public interests. The future health personnel compensation system reform should continue to increase the salary level of health workers，strengthen long-term incentives，and weaken short-term incentives.