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Information > Financial Terms > This page Indexing 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. Back to Information |