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

“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

It says profit sharing is "not going to be enough to deliver our support and the support of the workforce".

From BBC • Jul. 15, 2024

The union's statement said the salary raise is retroactive to Aug. 1, adding that employee profit sharing this year will stand at 10%.

From Reuters • Oct. 6, 2023

Not a few employers are giving a degree of profit sharing as a mere business proposition; and the results have been generally successful.

From Problems of Conduct by Drake, Durant