As an important part of social security system, the understanding and promotion of the Communist Party of China (CPC) on occupational welfare has been deepened in stages and dimensions along the path of division of security function on the basis of comprehensive judgment of the characteristics of the stage of economic development and the completion and level of basic social security system since the founding of CPC. From the founding day of CPC to the period of planned economy, the CPC promoted the workers’ welfare in the form of integration of occupational welfare and public welfare. Then, under the condition of market economy, the CPC realized the function division of security orientation between public and occupational welfare, and defined the function of supplementary security for occupational welfare; Further, on the basis of the completion of the construction of the basic social security system, the CPC began to advance the hierarchical division of the security function level of occupational welfare from moderate supplement to substantive supplement; At the same time, the CPC coordinated and pushed forward the functional division process of occupational security between the public and private sectors, from public private separation to public private “comparability”. Finally, through the promotion of the functional division of occupational security, a more sustainable social security system will be constructed to meet people’s needs for a better life.