Enterprise welfare fund refers to a special fund formed from the after-tax profits left to enterprises in accordance with the regulations in addition to income tax and adjustment tax. As the enterprise welfare fund is a part of the enterprise's own funds, its quantity depends on the size of the enterprise's operating results; However, enterprises do not allocate collective welfare funds completely according to the quantity and quality of labor provided by individual employees. In most cases, collective welfare is the material and cultural benefits enjoyed by employees. Only the part of the enterprise welfare fund that is used for emergency subsidies in employees' lives is directly allocated to individual employees, which becomes a supplement to their personal income and can only meet their abnormal needs; As for the part converted into unproductive fixed assets, any employee has no right to possess it and can only use it equally. At present, the labor insurance system of Chinese enterprises is not perfect, and the welfare fund of enterprises also has some functions of labor insurance (for example, subsidizing employees' injury, disability, illness and death, etc.). Of course, with the improvement and development of enterprise labor insurance and social insurance system, this function will tend to disappear.