What is pro rata meaning in salary?

Pro rata salary is one in which an employee receives the salary he would receive if he worked on a full-time schedule, but receives it proportionately for the amount of time he actually works. For instance, if the salary of a full time employee is ₹40,000 per month, then your pro rata salary will be ₹20,000 per month if you work 50% of the time. It is prevalent in part-time and contract employment.
 
Pro rata translates from Latin to mean "in proportion". In salary terms, it means adjusting a full-time employee's annual compensation so it accurately reflects a reduced number of hours worked or a partial period of employment.
 
Back
Top