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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

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

Union officials hope to address members’ lingering concerns in subsequent contracts, both in higher wages and possibly in profit sharing.

From Seattle Times ● Feb. 7, 2024

The trade unions also maintain that profit sharing is often administered in a patronizing manner, which is offensive to the self-respect of the workmen.

From Problems in American Democracy by Thames Ross Williamson

The Commerce Department is close behind with a profit-sharing arrangement in nuclear-energy company Westinghouse and stakes in semiconductor-related startups I-Pulse, SandboxAQ and xLight.

From MarketWatch ● Aug. 5, 2026

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

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