What is Profit Sharing?

Profit Sharing :

          “Profit-sharing is a method of industrial remuneration under which an employer undertakes to pay to his employees, a share in the net profits of the enterprise in addition to their regular wages”.

          Objectives of Profit-sharing :

(1)     To supplement the regular earning of the workers,

(2)     To create a sense of partnership among the workers and the management,

(3)     To enable the workers to participate in the prosperity of their company,

(4)     To develop cordial industrial relations and to improve employee morale.

(5)     To introduce incentive wage plan.

(6)     To raise productive efficiency by reducing costs and increasing output.