Definitions for "Profit sharing"
system in which an agreed proportion of a company's profits is paid to employees (as well as wages and salaries).
a system in which employees receive a share of the net profits of the business
A profit-sharing plan is a type of defined contribution retirement plan that employers may establish for their workers. The employer may add up to the annual limit set by Congress to each employee's profit-sharing account in any year the company has a profit to share, though there is no obligation to make a contribution in any year.