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• profit sharing
  profit sharing

  noun

  the sharing of profits, as between employer and employee, especially in such a way that the employee receives, in addition to wages, a share in the profits of the business.
• profit-sharing
  profit-sharing

  noun

  a system in which a portion of the net profit of a business is distributed to its employees, usually in proportion to their wages or their length of service

profit sharing

American  

noun

1. the sharing of profits, as between employer and employee, especially in such a way that the employee receives, in addition to wages, a share in the profits of the business.

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profit-sharing British  

noun

1. a system in which a portion of the net profit of a business is distributed to its employees, usually in proportion to their wages or their length of service

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profit sharing Cultural  

1. Distributing the profits, or part of the profits, of a business to its employees.

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Other Word Forms

• profitsharing
  adjective

Etymology

Origin of profit sharing

First recorded in 1880–85

Example Sentences

See Examples For:

profit sharing profit-sharing

“How is this all going to be financed? How’s the profit sharing to work?”

From The Wall Street Journal ● Oct. 29, 2025

Westinghouse’s AP1000 line of nuclear reactors will be used, the announcement said, and there would be profit sharing for all parties, including the U.S. government, once certain thresholds are met.

From MarketWatch ● Oct. 28, 2025

The government also cites the nature of Hanni's income, which is deemed to be "profit sharing, rather than wages", according to local reports, adding that she pays business income tax rather than employment income tax.

From BBC ● Nov. 20, 2024

With cost-of-living increases, workers will see about 33% in raises for a top assembly wage of $42 per hour, plus annual profit sharing, the union said.

From Seattle Times ● Dec. 7, 2023

What is the attitude of the trade unions toward profit sharing?

From Problems in American Democracy by Williamson, Thames Ross

Ford Motor Co. doubled its minimum wage to $5 daily in 1914, part of a $10,000,000 profit-sharing plan for 26,500 employees.

From Barron's ● May 20, 2026

World Liberty’s lawyer said no money changed hands and there is no profit-sharing arrangement with AB.

From The Wall Street Journal ● Apr. 28, 2026

In December 2024, South Korea's financial regulator launched an investigation into allegations that Bang entered into profit-sharing agreements with private equity funds ahead of Hybe's market debut, without proper public disclosure.

From BBC ● Apr. 21, 2026

On top of generous base salaries, Zhang has also seen companies offering profit-sharing agreements.

From The Wall Street Journal ● Mar. 30, 2026

There was the profit-sharing plan, with Wal-Mart’s stock price posted daily in a prominent spot near the break room.

From "Nickel and Dimed: On (Not) Getting By in America" by Barbara Ehrenreich