Cliff vesting is a schedule that determines when you fully own certain benefits from your employer, like retirement contributions or company equity. You don’t own anything at first, but after staying for a set period (called the “cliff”)you become 100% vested all at once. If you leave early, you usually lose those benefits. Common in retirement plans and startup equity, cliff vesting encourages employee retention. Some plans, especially at startups, combine a cliff with gradual vesting after—for example, 25% after one year, then monthly or quarterly. The key idea is that no benefits vest until the cliff is reached.