This study aims to explore the development and the current profile of Japanese workers’ compensation system (including regulations, benefits and finance) for the reference of Taiwan’s policy reforms. The research method is primarily based on literature review by collecting information via the internet and journal database. The research findings suggest that the trend of the Japanese workers’ compensation system’s reform has transformed from the employer’s liability approach (based on the Lab our Standard Act) into the livelihood protection approach (based on social insurance). In addition, the types and extents of the latter’s benefits have exceeded the former and become the centre of the workers’ compensation system. Lastly, suggestions for Taiwan policymakers are as follows: 1. to establish an independent workers’ compensation act; 2. the contents regarding Employers’ Compensation from the Labour Standard Act should be integrated into the Labour Insurance’s occupational injuries’ benefits; 3. the worker’s coverage under the Labour Insurance should be based on their employed workers ; 4. the benefits for occupational injuries should be comprehensive; 5. the enterprise scale for qualifying occupational injuries’ experience rate should be downsized; 6. the gap of contribution rate for occupational injuries insurance should be increased.