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I worked for a company a few years back that followed a similar idea. We had a bottom line for operating costs (salary, benefits, rent, utilities, other general expenses) plus a flat 25% being invested back into the company. Everything else left over at the end of the month was distributed to the employees based on their roles. It took a while to iron out. At first we had issues as the money was rolled out as a quarterly bonus, which caused a lot of tax to be taken off the top. It changed a lot over the first year, and ended up being abandoned in favor of giving consistent raises.


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