BEIJING, May 15 -- China's cabinet, the State Council, has released new rules on recruitment and promotion in public institutions.

According to a statement of the State Council's Legislative Affairs Office on Thursday, part of current human resource practices in public institutions are vague and no exit mechanisms are in place.

Public institutions must make their job openings accessible to all, except for those positions appointed by the government, predetermined by certain policies or involving state secrets.

A series of dubious appointments to public institutions have led the public to question whether job opportunities are only for the wealthy or those with powerful parents.

The new rules stipulate that public institution employees must compete for promotions, and the promotion should follow the procedure of publishing post qualifications, examining candidates, and evaluation, among other steps.

Official statistics show China's 1.11 million public institutions hold some 31.53 million state-funded jobs with stable incomes and benefits. Reforms of public institutions has invited competition and created contracted posts.

The new rules clarify the terms of such contracts, the length of probation periods and scenarios whereby contracts can be dissolved, among other regulations.

Employees in public institutions should be paid according to performance and their salary should rise in accordance with economic growth. Social security should also cover these employees.

China set out a plan and detailed timetable for the reform of public institutions in 2011. The new rules will go into effect on July 1.