pay as you earn
- noun
- /peɪ əz juː ɜrn/
- UK
- In the UK, most employees have their taxes deducted through pay as you earn.
Examples
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Under the pay as you earn system, taxes are deducted automatically.
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He checked his pay as you earn deductions on his monthly payslip.
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The pay as you earn system simplifies the tax process for both employers and workers.
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Many employees prefer the pay as you earn method for its simplicity.
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In the UK, most employees have their taxes deducted through pay as you earn.
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He checked his pay as you earn deductions on his monthly payslip.
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The pay as you earn system simplifies the tax process for both employers and workers.
Synonyms
Money that an employer takes from an employee's pay and sends to the government
A UK system where tax is taken from the money you earn before you get paid
How Regular
Surface Forms
Morphology
The phrase can be literally parsed as 'pay according to what you earn', so a B1 learner who knows pay/as/you/earn would likely infer that payments are tied to income. However, the full technical sense — a specific U.S. repayment plan with defined percentage rules and possible loan forgiveness — is specialized and not predictable from the constituents alone, so only partial transparency applies.
Etymology
Pay as you earn comes from the simple idea of paying tax at the same time you earn money. Employers take tax from each pay before you get it, so you literally 'pay as you earn', and that is why it means a system where tax is taken from your wages.