(In the UK and South Africa) a system by which an employer deducts income tax from an employee’s wages before paying them to the employee and sends the deduction to the government: a pay-as-you-earn scheme
More example sentences
- Since April 6 last, pay as you earn income tax has been deducted from employees under the new tax credit system.
- The extension is for people with simple tax affairs, who do not have any more than £2,000 tax to pay under self assessment, and are normally taxed through the pay as you earn code.
- In this way, they will help to boost Government revenue through taxes such as pay as you earn arising from increased number of people getting jobs.