Define: Vested

UK Accounting Glossary

Definition: Vested



What is the dictionary definition of Vested?

Dictionary Definition


  1. legal Settled, fixed or absolute, with no contingencies.
  2. Dressed or clothed, especially in vestments.

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Full Definition of Vested


To become vested employees of a company or corporation must adhere to a waiting period. The employer determines the length of time required to become vested; it usually ranges anywhere from one to five years. By being vested an employee becomes eligible for a full percentage of the contributions that their employer makes to their pension or qualified benefit program. The amount to be vested applies to employer payments made either to the company’s profit-sharing plan or Employee Stock Ownership Plan (ESOP). Being vested into an employer benefit program relates only to the portion the employer contributes. Accordingly, what employees contribute of their own money doesn’t need to be vested. After an employee is fully vested, the employee is eligible to retain the entire amount contributed by their employer, even if they decide to leave the company prior to retirement.


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Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/vested/
Modern Language Association (MLA):
Vested. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. March 29, 2020 https://payrollheaven.com/define/vested/.
Chicago Manual of Style (CMS):
Vested. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/vested/ (accessed: March 29, 2020).
American Psychological Association (APA):
Vested. PayrollHeaven.com. Retrieved March 29, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/vested/

Definition Sources


Definitions for Vested are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 5th February 2020.