» For other uses see Paye (disambiguation) PAYE (Pay As You-Earn)'s an amount collected by employers on behalf of the government from employees. This's, in effect, a provisional payment of tax on the employee's income. The amount withheld's determined partly by the employee's expected tax allowances, exemptions and reliefs, and partly by tax tables that determine the amount of tax to be deducted for the salary or wage paid to the employee. Wages includes sick pay and maternity pay. This means t… (More on Paye)