From Longman Dictionary of Contemporary EnglishPAYEPAYE /ˌpiː eɪ waɪ ˈiː/ noun [uncountable] British English BEW (pay as you earn) a system for paying tax in which tax is taken from workers’ wages and paid directly to the governmentFrom Longman Business DictionaryPAYEPAYE nounTAX pay as you earn; a system for paying tax used in Britain and some other countries in which tax is taken off workers’ wages and paid directly to the governmentEmployees whose tax is deducted at source under PAYE are not sent an income tax return.