escalator clause

noun

1. 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.

escalator clause

noun

1. 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

Word History and Origins

Origin of escalator clause¹

An Americanism dating back to 1925–30