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Source: Encyclopedia of Banking & Finance (9h Edition) by Charles J Woelfel
(We recommend this as work of authority.)

The tying of payment increases to some economic index.  For example, certain wage contracts are written in such a way that workers will receive an agreed-upon amount per hour plus an additional amount for each point increase in the consumer price index.  This type of wage arrangement is often called an escalator clause.  Social Security payments are also indexed.  This indexing assures that recipients' real incomes will not fall with inflation.

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