In the context of school fees, “pro rata” refers to the calculation of fees based on the proportion of the academic year or term that a student attends.
Here’s how it typically works:
Pro Rata Fee Calculation
1. Monthly or termly fees: The school calculates the monthly or termly fees based on the total annual fees divided by the number of months or terms in the academic year.
2. Pro rata adjustment: If a student joins or leaves the school mid-term or mid-year, the fees are adjusted pro rata, based on the number of days or weeks the student attended.
3. Refund or adjustment: If a student leaves the school, the pro rata calculation is used to determine the refund amount. Conversely, if a student joins mid-term, they may be required to pay a pro rata fee for the remaining period.
Example
Suppose the annual school fee is ₹200,000, and the student joins in the middle of the second term (out of four terms). The pro rata fee calculation might look like this:
1. Termly fee: ₹200,000 ÷ 4 terms = ₹50,000 per term
2. Pro rata adjustment: Since the student joined mid-term, they would pay half of the termly fee, i.e., ₹25,000 for the remaining half-term.
By calculating fees pro rata, schools can ensure that students and parents are charged fairly, based on the actual time attended.