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English definition of “pay freeze”

pay freeze

noun [C]
 
 
( also salary freeze, wage freeze)
HR, WORKPLACE a situation in which a company stops increasing employees' pay because of financial difficulties: Union leaders are considering the company's proposals to change working hours, reduce overtime, or impose a pay freeze.
ECONOMICS, GOVERNMENT a government policy of preventing pay increases in order, for example, to deal with inflation: The government are now proposing a pay freeze for public sector workers.
(Definition of pay freeze from the Cambridge Business English Dictionary © Cambridge University Press)
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