PAYE stands for Pay As You Earn

Employees pay their monthly income tax under this system during the year of income. Year of income is the calendar year, that is, it starts on 1st January and ends on 31st December of every year.

Employees' salaries and all other payments or benefits which are paid to him or her are subject to the Pay As You Earn tax scheme and the amount of tax withheld by employers is remitted to the Commissioner of Income Tax on or before the 7th day of the month following the month of deduction.