What is Pro Rata? & What Are Its Benefits?

Who Does Pro Rata Annual Salary Apply to?

Individuals who work part-time or for a limited time within a corporation are paid on a pro rata basis. It is frequently used in businesses where personnel are hired on a temporary basis, such as seasonal or freelance work.

How to Calculate the Pro-rata Salary?

Determine the Full-Time Equivalent (FTE) Hours first.Divide the employee's weekly hours by the full-time weekly hours if they work part-time, for example, 20 hours per week in a 40-hour workweek. In this instance, 20/40 equals 0.5 FTE.

How to Calculate the Pro-rata Salary?

Multiply the computed FTE value by the full-time pay. This will result in a pro-rata compensation. If the full-time wage is $50,000 and the FTE value is 0.5, the pro-rata salary is $50,000 * 0.5 = $25,000.

If you want more information about this or any finance or law matter visit: