In March 1950, in an attempt to realize the policies of protecting worker livelihood and promoting social security, the Government enacted the labor insurance scheme. This scheme was consigned to the Labor Insurance Department of Taiwan Life Insurance Co. for implementation. In addition, the Taiwan Provincial Government established the "Labor Insurance Management Committee" and "Fund Supervisory Committee", while later in 1953, the "Fishermen Insurance Administration Committee" was set up. These Committees were empowered respectively to supervise the related Insurance matters.tup a "Labor Insurance Management Committee", "Foundation Supervisory Committee" under its umbrella ,Later in 1953,it further setup the fishermen Insurance Administration Committee". These Committees each are empowered to supervise the related Insurance matters.

In 1958, the labor insurance was subject to the central government for legislation, which incorporated three regulations, including Taiwan Provincial Industrial Workers Insurance, Craft Workers Insurance, and Fishermen Insurance, into the Labor Insurance Act. The aforementioned three committees were also emerged as the Taiwan Provincial Labor Insurance Supervisory Commission, in which the Labor Insurance Bureau was established in execution of insurance affairs, under the jurisdiction of Taiwan Provincial Government.

In 1971, in accordance with the amendment of Labor Insurance Act, the territorial area of the insurance further covered Kinmen and Machu area. Meanwhile, the organization regulations were amended that the Commission was entitled with "Taiwan-Fukien Area", which manifested the transboundary insurance affairs across the Provincial and Municipal.

In 1979, following the third amendment of Labor Insurance Act, the administration of Labor Insurance Bureau was promoted directly under the jurisdiction of the Taiwan Provincial Government satisfying the purpose of enhancing the authority in implementing the labor insurance affairs and it became parallel to the Commission administratively, thus the organization regulations condensed the Commission's missions. Thereafter, the amended organization regulations in 1988 made no significant changes besides the additional positions of commissioners in increasing the public participation and monitoring.

In November 1995, following the subjection of the labor insurance affairs to the central government, Laws for the Supervisory Commission of Labor Insurance was stipulated. In July 1996, the name of the Commission was officially renamed as "Labor Insurance Supervisory Commission", which is subject to the jurisdiction of the Council of Labor Affairs of the Executive Yuan.