profit sharing

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.

profit-sharing

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

profit sharing

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

Other Words From

• profit·sharing adjective

Word History and Origins

Origin of profit sharing¹

First recorded in 1880–85

Example Sentences

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

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

From BBC

Fain said the deal also includes the end wage tiers at the company, as well as cost-of-living adjustments and “profit sharing for the first time in Daimler history.”

From Seattle Times

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

From Seattle Times

The union had already kicked off a strike on Sunday, which is set to end Tuesday, over the profit sharing.

From Reuters