Definition of pay as you earn in English:

pay as you earn

Line breaks: pay as you earn
(abbreviation: PAYE)

noun

[mass noun]
(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.

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