Archives: Terms

Definition of Peace Dividend A peace dividend refers to the economic benefit that arises from a decrease in military spending. This term typically comes into use after the end of a major conflict or during a significant reduction in a country’s defense budget. The assumption is that resources previously dedicated […]

### Payments Union #### Definition of Payments Union A Payments Union is an agreement between several countries to manage multilateral payment systems for transactions among themselves. It facilitates trade between the member countries by making it easier to transact without needing to settle each transaction in a major global currency […]

### Definition of Payments in Kind Payments in kind (PIK) represent a form of transaction that involves the exchange of goods and services without the use of money as a medium. Rather than paying in cash, the payer offers the recipient goods or services equivalent to the monetary value of […]

Definition of PAYE PAYE, or Pay As You Earn, is a method of tax collection where employers deduct income tax and national insurance contributions from their employees’ earnings before the salary is paid out. This system ensures that the amount of tax paid is spread out over the year, aligning […]

Definition of Pay-Off Matrix A pay-off matrix is a table that shows the potential outcomes of different strategies in a competitive situation. It is widely used in game theory, economics, and business strategy to analyze what actions players should take to maximize their returns, given the possible decisions of other […]

Definition of Payback Period The payback period is a financial metric used to calculate the time it takes for an investment to generate enough cash flow to recover its initial cost. It is a popular tool among managers and investors because it provides a quick assessment of an investment’s risk […]

Definition of Pay-As-You-Go Pension A Pay-As-You-Go (PAYG) pension scheme is a retirement plan where the contributions of the working population are used to finance the pensions of current retirees. Unlike a funded pension plan, where individuals save money that is then invested to finance their own future retirement benefits, a […]

Definition of Pay Freeze A pay freeze refers to a situation where an organization decides to halt increases in employees’ salaries or wages for a certain period. This decision can be made for various reasons, including economic downturns, financial difficulties within the company, or other strategic considerations. During a pay […]

Definition of Pay Control Pay control refers to the regulatory policies or mechanisms implemented by governments or organizations to manage or limit the remuneration of individuals within the workforce. This could involve setting minimum wages, capping executive pay, or establishing guidelines for pay increases within a company or industry. The […]

Definition of Pay As You Earn (PAYE) Pay As You Earn (PAYE) is a tax withholding system used by employers to deduct income tax and National Insurance contributions directly from employees’ wages or salaries. The deducted amount is then remitted to the tax authorities on the employee’s behalf. PAYE ensures […]