Pro-Rata

Pro-Rata in Latin means ‘in proportion’. It is used by organizations to allocate value to employees according to their share of the whole. When the calculation is based on pro-rata it means everyone gets a fair share. It means proportionally, such as fees that rise pro rata with employee salaries. The practice of prorating can apply in many areas, from billing for services to paying out dividends or allocating business partnership income.

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