profit sharing


: a system or process under which employees receive a part of the profits of an industrial or commercial enterprise

Examples of profit sharing in a Sentence

Recent Examples on the Web But Barra pushed back against the union’s charge that the workers are looking for a fair pay increase which would nearly mirror her pay increases in recent years, pointing to profit sharing for employees which has hit record levels the past the few years. Chris Isidore, CNN, 15 Sep. 2023 The Jeep maker’s proposal, which is in line with proposals from Ford and General Motors, would also continue to offer profit sharing to workers, according to new details on the offer released by the company Saturday. NBC News, 16 Sep. 2023 Every book purchased on the site financially supports independent, brick-and-mortar bookstores—the recipient can select from more than 1,800 bookstores or opt to contribute to the profit sharing pool that helps all stores. Melanie Fincher, Southern Living, 9 Sep. 2023 Full-time permanent Ford employees at the top wage rate could be paid $98,000 that includes wages, cost-of-living adjustment bonus, ratification bonus, profit sharing and overtime, in the first year of the contract, Farley said. Jamie L. Lareau, The Courier-Journal, 1 Sep. 2023 The new contract would improve profit sharing to match Delta Air Lines’ at 10% up to $2.5 billion pre-tax profit and 20% for anything above. Alexandra Skores, Dallas News, 7 July 2023 Through a worker co-op, employees make the decisions and have access to benefits including profit sharing. Helen Li, Los Angeles Times, 4 Aug. 2023 The companies generally contend that their wages, profit sharing, health care, and other benefits are the best in the industry. Tom Krisher,, 11 July 2023 Past assistance and the future of Drexel Town Square's final parcel The council also voted on May 16 to eliminate profit sharing provisions from preceding agreements. Journal Sentinel, 24 May 2023 See More

These examples are programmatically compiled from various online sources to illustrate current usage of the word 'profit sharing.' Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback about these examples.

Word History

First Known Use

1872, in the meaning defined above

Time Traveler
The first known use of profit sharing was in 1872

Dictionary Entries Near profit sharing

Cite this Entry

“Profit sharing.” Dictionary, Merriam-Webster, Accessed 10 Dec. 2023.

Legal Definition

profit sharing

profit shar·​ing
: a plan under which employees receive a part of the profits of an enterprise

More from Merriam-Webster on profit sharing

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