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

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

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 Williamson, Thames Ross