Common uses for service calculations
- Pension eligibility: Many defined-benefit pensions require a minimum number of years of service (often 5, 10, or 20 years) to qualify for full or reduced benefits.
- Vesting schedules: 401(k) employer matching contributions often vest on a cliff (e.g., 3 years) or graded (e.g., 20%/year over 5 years) schedule.
- Annual leave entitlement: Many employers calculate vacation days based on completed years of service.
- Severance calculations: Severance pay in many countries and contracts is calculated as a multiple of weeks per year of service.
- Service awards: Many organisations recognise 5, 10, 15, 20, 25 year milestones. This calculator helps you find those exact dates.