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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

“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

They, like the players, are part of a newly-minted profit sharing agreement with the Lions.

From BBC • May 8, 2025

Although the current contract contains no provision for profit sharing, it does allow union officials to explore such an arrangement with PCC management.

From Seattle Times • Feb. 7, 2024

Employers have sometimes tried out profit sharing in the hope that it would prevent strikes and other labor troubles.

From Problems in American Democracy by Williamson, Thames Ross