Underpay

To pay someone less than what is due or appropriate for their work, services, or value. This term typically relates to situations in which an employee or contractor receives a wage that falls below the standard or expected compensation for their role or contributions, leading to inequality and dissatisfaction. Underpayment can result from deliberate employer practices or systemic issues in compensation structures.

Underpay meaning with examples

• The company decided to underpay the interns, believing that their lack of experience justified the lower wages. However, this approach led to dissatisfaction among the interns and poor retention rates.
• Widespread reports showed that many teachers were underpaid, causing some to leave the profession entirely in search of better compensation and benefits elsewhere.
• Freelancers often find themselves in situations where clients attempt to underpay for their services, putting them in a difficult position when negotiating fair rates for their work.
• In many industries, underpaying employees can lead to high turnover rates, affecting team stability and the quality of the work produced.
• The government has implemented new regulations aimed at preventing companies from underpaying workers, promoting fair wages and improving overall job satisfaction.