The article outlines the conceptual framework for the transformation of the income management system, which involves changes in two areas: improving the system of social standards and guarantees; optimizing the deductions from the population income. In order to justify the expediency of introducing the conceptual framework for the transformation of the income management system, a modeling of various factors influence on the population income level was carried out using correlation-regression analysis. It was proved that each of the factors (minimum wage, minimum pension, subsistence minimum, tax burden, social insurance contributions) determines not only the resulting indicator - income, but also significantly affects each other. It was revealed that the minimum wage has the greatest influence on incomes among other regulation instruments. Therefore, when establishing its level, it is necessary to take into account that the corresponding changes will influence tax revenues volume, social deductions and subsistence minimum. According to the revealed negative factors and causes of the critical situation of income formation, the main directions for the income regulation system improvement were developed.