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pay as you earn

pay as you earn

4.3
A system that takes income tax from workers' pay before they receive it
  • noun
  • /peɪ əz juː ɜrn/
  • UK
translation icon : pago a medida que se gana
  • In the UK, most employees have their taxes deducted through pay as you earn.

Examples

  • Under the pay as you earn system, taxes are deducted automatically.

  • He checked his pay as you earn deductions on his monthly payslip.

  • The pay as you earn system simplifies the tax process for both employers and workers.

  • Many employees prefer the pay as you earn method for its simplicity.

  • In the UK, most employees have their taxes deducted through pay as you earn.

  • He checked his pay as you earn deductions on his monthly payslip.

  • The pay as you earn system simplifies the tax process for both employers and workers.

Synonyms

withholding
vspay as you earn
  • Specialized
7 6.7

Money that an employer takes from an employee's pay and sends to the government

is the UK system that collects tax by deduction before wages are paid
PAYE
vspay as you earn
  • UK
6.3

A UK system where tax is taken from the money you earn before you get paid

is the full phrase rather than the acronym

How Regular

pay as you earn
  • UK
4.3
pension plan
  • US
27 3.1

Surface Forms

pay as you earn singular
pay as you earn singular

Morphology

pay + as + you + earn

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.