Pro rata is an adverb or adjective meaning in equal portions or in proportion.[1] The term is used in many legal and economic contexts. The hyphenated spelling pro-rata for the adjective form is common, as recommended for adjectives by some English-language style guides. In American English, this term has been vernacularizedtoproratedorpro-rated.
Each of several partners "is liable for [her or 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."[7]
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."[8] "A creditor of an insolvent estate is to be paid pro rata with creditors of the same class."[9]
A worker's part-time work, overtime pay, and vacation time are typically calculated on a pro rata basis.[10][11]
Under US Federalregulations, a government worker has the right such 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."[12]
Under Britishemployment law, "Regulations state that, where appropriate, the pro rata principle should be applied to any comparison ... to be given ... holiday."[16]
Likewise, in Tasmania, Australia, the law clearly grants workers the privilege of part-time benefits for leave of absence.[17][18] This is granted under the Long Service Leave Act 1976.[19]
Incorporate practice, "a pro-rata dividend means that every shareholder gets an equal proportion for each share he or she owns."[20]
Inbanking, "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)."[20]
Inventure capital, it can refer to the Pro-Rata Participation right and mean "the right to continue to participate in future rounds so that you can maintain your ownership."[21]
Pro-Ration (pro rata) means if the battery fails anytime within the first two years of service, it is replaced for free. After those first two years, a pro-rated fee is assessed for the replacement. However, the pro-ration (pro rata) is typically calculated from the date the battery was sold.
^"Long Service Leave Guide"(PDF). WST.Tas.gov.au. Tasmania Department of Justice and Industrial Relations. February 2002. Archived from the original(PDF) on 2006-09-27. Retrieved 2016-08-30.
