pay as you earn

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Definitions from WordNet

Noun pay as you earn has 1 sense

PAYE, pay as you earn - the British system of withholding tax
--₁ is a kind of withholding tax, withholding

Definitions from the Web

Pay As You Earn

Description:

The term "pay as you earn" refers to a system or method of paying for something where the payment is directly linked or proportional to the income or earnings of an individual. It is commonly associated with income-based repayment plans for student loans, but can also be applied to various other payment arrangements.

Senses and Usages:

Sense 1 - Income-Based Repayment Plan:

In this sense, "pay as you earn" refers to a specific repayment plan for student loans, where the monthly payment amount is determined based on the borrower's income and family size. This allows borrowers to make affordable payments that align with their earnings.

Example Sentence: The pay-as-you-earn plan helped me manage my student loan payments while I was still building my career.

Related Products: Income-Based Repayment Plans

Sense 2 - Progressive Tax System:

In this sense, "pay as you earn" refers to a taxation system where individuals and businesses pay taxes on a regular basis, such as through payroll deductions or estimated tax payments. The amount paid is directly proportional to the income or earnings of the taxpayer.

Example Sentence: The pay-as-you-earn tax system ensures that individuals contribute their fair share based on their income level.

Sense 3 - Flexible Work Arrangements:

In this sense, "pay as you earn" refers to a type of employment or freelance work arrangement where individuals are compensated based on the amount of work they complete or the number of hours they work. These arrangements are often seen in the gig economy or for contract-based jobs.

Example Sentence: With pay-as-you-earn freelancing, I can choose how much I work and earn based on my availability.