escalator clause


noun

a provision in a contract calling for adjustments, usually increases, in charges, wages, or other payments, based on fluctuations in production costs, the cost of living, or other variables.
Also called, especially British, escalation clause.

Origin of escalator clause

An Americanism dating back to 1925–30

Words nearby escalator clause

British Dictionary definitions for escalator clause

escalator clause

noun

a clause in a contract stipulating an adjustment in wages, prices, etc, in the event of specified changes in conditions, such as a large rise in the cost of living or price of raw materials