Pro rata

Pro rata

Pro rata is an adverb or adjective, meaning "in proportion". [ [ Farlex's The Free Dictionary] ] The term is used in many legal and economic contexts, and sometimes spelled "pro-rata".

Meanings of Pro rata

More specifically, "Pro rata" means:
# In proportion to some factor that can be exactly calculated. [ [] . Accessed May 29, 2008.] [ [ Investor Words web site] ] [Ehrich, Eugene, "Amo, Amas, Amat and More", p. 233 (New York, Harper Row 1985). ISBN 0-06-27217-1.]
# To count based on amount of time that has passed out of the total time.
# Proportional Ratio [ Investopedia web site] . Accessed May 29, 2008.]

Pro-rata has a latin etymology, from "pro", according to, for, or by, and "rata", feminine ablative of calculated (rate or change). [ [ The Free Dictionary] . Accessed May 29, 2008.]


Examples in law and economics include the following noted below.


When liability for a toxic tort or Products liability concerns many manufacturers, the liability under tort law is allocated proportionally. [ [] State of Maine government web site pdf file listing of Pro Rata Share Responsibility.]

Partnership liability

Each of several partners "is liable for his own share or proportion only, they are said to be bound "pro rata". An example ... may be found in the liability of partners; each is liable ... only "pro rata" in relation to between themselves." [ [ ClickDocs UK Legal web site] (quote marks changed to italics for clarity).]

Bankruptcy law

When a debtor files for bankruptcy, and "the debtor is insolvent, creditors generally agree to accept a pro rata share of what is owed to them. If the debtor has any remaining funds, the money is divided proportionately among the creditors, according to the amount of the individual debts." [ [ legal web site] ] "A creditor of an insolvent estate is to be paid pro rata with creditors of the same class." [ [ WWLIA legal web site] ]

Worker's pay and benefits

A worker's part-time work, overtime pay, and vacation time are typically calculated on pro rata basis. [John Steven Niznik, "Pro Rata", at [ Job Search Tech web site] .] [ [ web page about pro-rata payment for part-time work] ] [ [ Uk blog] ]

Under US Federal regulations, a government worker has the right, that, "When an employee's service is interrupted by a non-leave earning period, leave is earned on a pro rata basis for each fractional pay period that occurs within the continuity of employment." [ [ US Department of Commerce Office of Human Resources Management official web site] , citing 5 CFR 630.204.]

The American Federation of Teachers (AFT), a US labor union, argues that "all" part-time or adjunct instructors should get pro-rata pay for teaching college courses. [ [ AFT web site] ] This is an important issue, as of 2007, for part-time faculty. [ [ California Part-time Faculty Association official web site page regarding pro-rata pay] ]

Irish secondary school teachers are entitled to pro-rata pay for part-time work. [ [ Association of Secondary Teachers Ireland official web site page regarding pro-rata pay] ]

Under British employment law, "Regulations state that, where appropriate, the pro rata principle should be applied to any comparison ... to be given ... holiday." [ [ NASUWT web site] "Holiday" is used here in the British sense of the American vacation.]

Likewise, in Tasmania, Australia, the law clearly grants workers the privilege of part-time benefits for leave of absence. [ [ Tasmanian Government official web site] ] [ [] Tasmanian Government official web site pdf file.] This is granted under the "Long Service Leave Act 1976". [ [;cond=;doc_id=95%2B%2B1976%2BAT%40EN%2B20070816000000;histon=;prompt=;rec=-1;term= Tasmanian Legislation online official web site] ]

Investment laws

In corporate securities practice, "a pro-rata dividend means that every shareholder gets an equal proportion for each share he or she owns."

In banking, "Pro-rating also refers to the practice of applying interest rates to different time frames. If the interest rate was 12% per annum, you could pro-rate this number to be 1% a month (12%/12 months)."


In insurance, "pro rata" is used to determine risk based on the time the insurance policy is in effect. [ [ InsuranceZA web site] ] It may also be used to describe "proportional liability" when more than one person is responsible for a loss or accident. [ [ legal web site] ]

College tuition

When a college student withdraws, colleges almost always refund tuition payments on a pro-rata basis. [See, "e.g.", [] ]


ee also

* Employee Retirement Income Security Act
* Liability
* Vesting

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Look at other dictionaries:

  • pro rata — pro ra·ta /ˌprō rā tə, rä , ra / adv [Latin]: proportionately according to an exactly calculable factor (as share or liability) pro rata adj Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 …   Law dictionary

  • pro rata — pro rà·ta loc.agg.inv., loc.avv., loc.s.m.inv., lat. 1. loc.agg.inv., loc.avv. TS fin. secondo la parte, la quota stabilita; in proporzione: ripartire pro rata, debito, credito pro rata | loc.s.m.inv. TS dir. regola per la detraibilità dell IVA… …   Dizionario italiano

  • pro rata — pro ra|ta [prəu ˈra:tə US prou ˈreıtə] adj [only before noun] especially BrE [Date: 1500 1600; : Latin; Origin: for the rate ] a payment or share that is pro rata is calculated according to how much of something is used, how much work is done,… …   Dictionary of contemporary English

  • pro rata — |pròrrátà| loc. Usa se para indicar que algo é feito numa determinada proporção (ex.: cálculo pro rata, deduzir pro rata).   ‣ Etimologia: locução latina, de pro, conforme, segundo, em proporção com + ratus, a, um, fixado, regulado, invariável,… …   Dicionário da Língua Portuguesa

  • pro rata — 1570s, from L. pro rata (parte) according to the calculated (share), from pro for + rata, ablative singular of ratus, pp. of reri to count, reckon (see RATE (Cf. rate) (n.)) …   Etymology dictionary

  • pro rata — [prō rāt′ə, rät′ə] adv., adj. [L pro rata (parte), according to the calculated (share)] in proportion; proportionate(ly) …   English World dictionary

  • Pro rata — (lat., d. h. pro rata parte, »verhältnismäßig«), ein Ausdruck, der gebraucht wird, wenn sich eine Forderung oder eine Verbindlichkeit beim Vorhandensein mehrerer Berechtigten oder Verpflichteten, wie dies die Regel ist, in ebenso viele einzelne… …   Meyers Großes Konversations-Lexikon

  • Pro rata — Pro Pro, prep. [L.; akin to prae before, Gr. ?, and E. for. See {For}, prep., and cf. {Prior}, a.] A Latin preposition signifying for, before, forth. [1913 Webster] {Pro confesso} [L.] (Law), taken as confessed. The action of a court of equity on …   The Collaborative International Dictionary of English

  • pro-rata — /proʊ ˈratə/ (say proh rahtuh) adjective 1. calculated as a proportion of the whole amount in relation to another factor, as the proportion of a full time salary paid to a part time employee: a pro rata deduction. –verb (t) (pro rataed, pro… …  

  • Pro rata — Pro ra ta [L.] In proportion; proportionately; according to the share, interest, or liability of each. [1913 Webster] …   The Collaborative International Dictionary of English

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