---
title: Payroll withholding and contributions
description: How AXOFFICE calculates salary income tax under section 149 and EOBI, provincial social security, provident fund and gratuity contributions.
url: https://docs.tryaxo.com/payroll-tax/
updated: 2026-10-04
---

# Payroll withholding and contributions

*How income tax on salaries and statutory contributions are worked out in Pakistan.*

In Pakistan, AXO works out income tax on salaries under section 149 using the current tax slabs, and statutory contributions — EOBI, provincial social security, provident fund and gratuity — from your settings.

The withholding shown before you approve a run is calculated exactly as it will be when the run posts, so what you check is what gets recorded.

Amounts withheld feed your withholding statements in **Accounting › Tax & filings**.

> **Note:** Tax rates change with each budget. AXO's rates follow the current fiscal year; if you're unsure about any figure, check it with your tax adviser.