Abstract:The establishment of wage arrears is an important measureto help workers solve their temporary life difficulties caused by corporate wage arrears,and maintain social stability.Although it has been movingforward in controversy,the Shanghai wage security fund is working well. Since the establishment of the fund,there have been no major social incidents caused by wage arrears in Shanghai.Althoughtheproblemofwage arrears cannot be avoided from thesource,the wage arrears protection fundistheeffectivelegalmeanstoresclve the contradiction in wage arrears. To better play its role,the Shanghai wage security fund system also needs tofurtherconsiderandimproveitsftmctions in aspects of establishing an independent wage security fund committee,handling the relationship withthe wage guarantee system,union participation and legislative authority.