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Pro rata is an adverb or adjective, meaning in proportion. The term is used in many legal and economic contexts, and sometimes spelled pro-rata.

specifically, Pro rata means:
  1. In proportion to some factor
    Factor

    A factor, a Latin word meaning 'who/which acts' may refer to:* Factor , a person who acts for another, notably a mercantile and/or colonial agent...
     that can be exactly calculated.
  2. To count based on amount of time
    Time

    Time is a component of the measurement used to sequence events, to compare the durations of events and the intervals between them, and to quantify the motions of objects....
     that has passed out of the total time.
  3. Proportional Ratio
    Ratio

    A ratio is an expression which compares quantities relative to each other. The most common examples involve two quantities, but in theory any number of quantities can be compared....
     


Pro-rata has a Latin
Latin

Latin is an Italic language, historically spoken in Latium and Ancient Rome. Through the Military history of the Roman Empire, Latin spread throughout the Mediterranean and a large part of Europe....
 etymology
Etymology

Etymology is the study of the roots and history of words; and how their form and meaning have changed over time.In languages with a long detailed history, etymology makes use of philology, the study of how words change from culture to culture over time....
, from pro
PRO

Pro is a Latin preposition meaning "for". It may also refer to:* .pro, a sponsored generic top-level domain* Pro Theme, an Apple Mac GUI* Professional, either a person in a profession or in sports...
, according to, for, or by, and rata
Rata

Rata may refer to the following:* Plants of the genus Metrosideros from New Zealand, including** Metrosideros robusta ** Metrosideros bartlettii ...
, feminine
Grammatical gender

In linguistics, grammatical genders, sometimes also called noun classes, are classes of nouns reflected in the behavior of associated words; every noun must belong to one of the classes and there should be very few which belong to several classes at once....
 ablative of calculated (rate or change).






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Pro rata is an adverb or adjective, meaning in proportion. The term is used in many legal and economic contexts, and sometimes spelled pro-rata.

Meanings of Pro rata

More specifically, Pro rata means:
  1. In proportion to some factor
    Factor

    A factor, a Latin word meaning 'who/which acts' may refer to:* Factor , a person who acts for another, notably a mercantile and/or colonial agent...
     that can be exactly calculated.
  2. To count based on amount of time
    Time

    Time is a component of the measurement used to sequence events, to compare the durations of events and the intervals between them, and to quantify the motions of objects....
     that has passed out of the total time.
  3. Proportional Ratio
    Ratio

    A ratio is an expression which compares quantities relative to each other. The most common examples involve two quantities, but in theory any number of quantities can be compared....
     


Pro-rata has a Latin
Latin

Latin is an Italic language, historically spoken in Latium and Ancient Rome. Through the Military history of the Roman Empire, Latin spread throughout the Mediterranean and a large part of Europe....
 etymology
Etymology

Etymology is the study of the roots and history of words; and how their form and meaning have changed over time.In languages with a long detailed history, etymology makes use of philology, the study of how words change from culture to culture over time....
, from pro
PRO

Pro is a Latin preposition meaning "for". It may also refer to:* .pro, a sponsored generic top-level domain* Pro Theme, an Apple Mac GUI* Professional, either a person in a profession or in sports...
, according to, for, or by, and rata
Rata

Rata may refer to the following:* Plants of the genus Metrosideros from New Zealand, including** Metrosideros robusta ** Metrosideros bartlettii ...
, feminine
Grammatical gender

In linguistics, grammatical genders, sometimes also called noun classes, are classes of nouns reflected in the behavior of associated words; every noun must belong to one of the classes and there should be very few which belong to several classes at once....
 ablative of calculated (rate or change).

Examples

Examples in law
LAW

LAW may refer to:* Anti-tank warfare, e.g. the US Army M72 LAW or the British Army LAW 80*Palestinian Society for the Protection of Human Rights ...
 and economics
Economics

File:Ballard Farmers' Market - vegetables.jpgEconomics is the Social sciences that studies the Production theory basics, Distribution , and Consumption of Good and Service ....
 include the following noted below.

Torts

When liability for a toxic tort
Toxic tort

A toxic tort is a special type of personal injury lawsuit in which the plaintiff claims that exposure to a chemical caused the plaintiff's injury or disease....
 or Products liability concerns many manufacturers, the liability
Liability

In the most general sense, a liability is anything that is a wikt:hindrance, or puts individuals at a disadvantage. It can also be used as a slang term to describe someone that puts a team or group of which they are a member at a disadvantage, and would thus be better off without....
 under tort law is allocated proportionally.

Partnership liability

Each of several partners
Partnership

A partnership is a type of business entity in which partners share with each other the profits or losses of the business undertaking in which all have invested....
 "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."

Bankruptcy law

When a debtor
Debtor

In economics a debtor is simply an entity that owes a debt to someone else, the entity could be an individual, a firm, a government, or an organization....
 files for bankruptcy
Bankruptcy

Bankruptcy is a legally declared inability or impairment of ability of an individual or organization to pay its creditors. Creditors may file a bankruptcy petition against a debtor in an effort to recoup a portion of what they are owed or initiate a restructuring....
, and "the debtor is insolvent, creditor
Creditor

A creditor is a party that has a claim to the services of a second party. It is a person or institution to whom money is owed. The first party, in general, has provided some property or Service to the second party under the assumption that the second party will return an equivalent property or service....
s 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." "A creditor of an insolvent estate is to be paid pro rata with creditors of the same class."

Worker's pay and benefits

A worker's part-time work, overtime
Overtime

Overtime is the amount of time someone works beyond normal working hours. Normal hours may be determined in several ways:*by custom ,*by practices of a given trade or profession,...
 pay, and vacation time are typically calculated on pro rata basis.

Under US Federal
Federal government of the United States

The Federal Government of the United States is the central current reigning United States governmental body, established by the United States Constitution....
 regulations, a government
Government

Government is the body within any organization that has the authority to make and the power to enforce laws, regulations, or rules. Typically, the government refers to a civil government -- local, provincial, or national -- but commercial, academic, religious, or other formal organizations are also administered by governing bodies....
 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."

The American Federation of Teachers
American Federation of Teachers

The American Federation of Teachers or AFT is an American trade union founded in 1916 which represents teachers; paraprofessionals and school-related personnel; local, state and federal employees; higher education faculty and staff; and nurses and other healthcare professionals....
 (AFT), a US
United States

The United States of America is a Federal government constitutional republic comprising U.S. state and a federal district. The country is situated mostly in central North America, where its Contiguous United States and Washington, D.C., the Capital districts and territories, lie between the Pacific Ocean and Atlantic Oceans, Borders of the U...
 labor union, argues that all part-time or adjunct
Adjunct

Adjunct may refer to:* Adjunct , words used as modifiers* Adjuncts, sources of sugar used in brewing...
 instructors should get pro-rata pay for teaching college
College

File:Government college for Women Dhoke Kala Khan.JPGCollege is a term most often used today to denote an education institution. More broadly, it can be the name of any group of collegialitys, for example, an electoral college, a College of Arms or the College of Cardinals....
 courses. This is an important issue, as of 2007, for part-time faculty
Teacher

In education, a teacher is a person who teaches. A teacher who teaches an individual student may also be described as a personal tutor.The role of teacher is often formal and ongoing, carried out by way of Occupation or Profession at a school or other place of formal education....
.

Irish
Ireland

Ireland is the List of islands by area in Europe, and the twentieth-largest island in the world. It lies to the north-west of continental Europe and is surrounded by hundreds of islands and islet....
 secondary school
Secondary school

Secondary school is a term used to describe an educational institution where the final stage of compulsory schooling, known as secondary education, takes place....
 teachers are entitled to pro-rata pay for part-time work.

Under British
United Kingdom

The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom , the UK or Britain,is a sovereign state located off the northwestern coast of continental Europe....
 employment law, "Regulations state that, where appropriate, the pro rata principle should be applied to any comparison ... to be given ... holiday."

Likewise, in Tasmania
Tasmania

Tasmania is an Australian island and States and territories of Australia of the same name. It is located south of the eastern side of the continent, being separated from it by Bass Strait....
, Australia
Australia

Australia, officially the Commonwealth of Australia, is a country in the southern hemisphere comprising the Australia of the world's smallest continent, the major island of Tasmania, and numerous list of islands of Australia in the Indian Ocean and Pacific Oceans....
, the law clearly grants workers the privilege of part-time benefits for leave of absence
Leave of absence

Leave of absence is a term used to describe a period of time that one is to be away from his/her primary job, while maintaining the status of employee....
. This is granted under the Long Service Leave Act 1976.

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)."

Insurance

In insurance
Insurance

Insurance, in law and economics, is a form of risk management primarily used to Hedge against the risk of a contingent loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for a premium, and can be thought of as a guaranteed small loss to prevent a large, possibly devastating los...
, pro rata is used to determine risk
Risk

Risk is a concept that denotes the precise probability of specific eventualities. Technically, the notion of risk is independent from the notion of value and, as such, eventualities may have both beneficial and adverse consequences....
 based on the time the insurance policy is in effect. It may also be used to describe proportional liability when more than one person is responsible for a loss
Loss

Loss may refer to:*A negative difference between retail price and cost of production*An event in which the team or individual in question did not win....
 or accident
Accident

An accident is a specific, identifiable, unexpected, unusual and unintended external action which occurs in a particular time and place, without apparent or deliberate cause but with marked effects....
.

College tuition

When a college
College

File:Government college for Women Dhoke Kala Khan.JPGCollege is a term most often used today to denote an education institution. More broadly, it can be the name of any group of collegialitys, for example, an electoral college, a College of Arms or the College of Cardinals....
 student
Student

The word student is etymology derived through Middle English from the Latin Latin conjugation#Principal parts for the active voice Grammatical conjugation verb "studere", Meaning "to direct one's zeal at"; hence a student could be described as 'one who directs zeal at a subject'....
 withdraws, colleges almost always refund tuition payments on a pro-rata basis.

See also

  • Employee Retirement Income Security Act
    Employee Retirement Income Security Act

    The Employee Retirement Income Security Act of 1974 is an United States Act of Congress that establishes minimum standards for pension plans in private industry and provides for extensive rules on the Income tax in the United States effects of transactions associated with employee benefit plans....
  • Liability
    Liability

    In the most general sense, a liability is anything that is a wikt:hindrance, or puts individuals at a disadvantage. It can also be used as a slang term to describe someone that puts a team or group of which they are a member at a disadvantage, and would thus be better off without....
  • Vesting
    Vesting

    In law, vesting is to give an immediately secured right of present or future enjoyment. One has a vested right to an asset that cannot be taken away by any third party, even though one may not yet possess the asset....