The Bible says that every single one of us is a sinner, whether we agree or not. Sin is separation from God. God's Holiness demands a penalty be paid for our sin. Wages are something we earn for our performance. In this case because we are sinners, we earn death.
Death is separation.
Our bodies die when our spirit separates from it, most everyone understands this. But the death that is mentioned in this scripture is not just your everyday body in the ground type of death. No, this death is the eternal death that we earn as sinners. Eternal death is eternal separation from God in Hell. This eternal death is the natural end for all mankind, from which there is no escape.