What is the meaning of escalator clause?

escalator clause is a provision of an agreement that provides for automatic adjustments in payments based on an economic index that neither party to the agreement controls. Typical escalator clauses provide for increases in wages based on increases in the cost of living index, or higher rent or other charges based on high fuel or maintenance costs.

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APABarry Goldsmith. (2010). escalator clause. Retrieved September 24, 2026, from http://smartdefine.org/escalator_clause/definitions/1153127
ChicagoBarry Goldsmith. 2010. "escalator clause" http://smartdefine.org/escalator_clause/definitions/1153127 (accessed September 24, 2026).
HarvardBarry Goldsmith 2010, escalator clause, Smart Define, viewed 24 September, 2026, <http://smartdefine.org/escalator_clause/definitions/1153127>.
MLABarry Goldsmith. "escalator clause" 21 October 2010. Web. 24 September 2026. <http://smartdefine.org/escalator_clause/definitions/1153127>
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