Since 1998 when Shenzhen promulgated the legislation on the security of overdue wages, other localities in China such as Shanghai, Jiangsu, Zhejiang and Hubei have also followed this trend to issue their respective regulations on this subject. These local legislations are formulated to establish a local fund scheme to make advancement to the employees to whom their employers own wages to the required extent. The regulations at different localities vary in standards for employers' submission. Employers in Shenzhen are required to submit RMB 400 to the fund during the 1st quarter of each year, while the annual submission amount in Shanghai is the local minimum monthly salary standard.
Recently Shenzhen publicly announced the Implementing Guidelines for Shenzhen Special Economic Zone Regulations on the Security of Wages Owned by Enterprises, to be effective from October 1, 2014. The guidelines further clarify that the regulations and the guidelines apply to all legally incorporated enterprises and other economic organisations, excluding sole or family proprietors, public organisations, institutions, and branches of employers located outside the Zone. Under the guidelines, the employee incurring overdue wages may apply for advancement for overdue wages to the local human resource authorities where the employment occurs, or where the employer is registered.