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Pro-Rata

Updated on: October 14, 2026 Sneha Gondhale 1 min read

Pro-rata is a Latin term that means "in proportion." It is used to describe the allocation or distribution of something based on a specific ratio or percentage. Pro-rata salary, for example, refers to an employee’s compensation being paid in proportion to the amount of time they have actually worked.

The term shows up often in finance, employment, and resource allocation, wherever amounts need to scale fairly with time or usage.

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