Definition, Meaning & Synonyms

pay-cut

noun

/ˈpeɪ kʌt/

Definition

A reduction in an employee’s salary or wages.

Examples

After the company faced financial losses, many employees received a pay-cut.
She was upset about the pay-cut, but understood it was necessary for the business.
Despite the pay-cut, he continued to work hard to show his dedication.

Meaning

A pay-cut occurs when an employer decreases the amount of money an employee earns for their work, which can happen due to various reasons such as budget cuts, economic downturns, or company restructuring.