escalator clause means: A contract may contain provisions that allow cost increases to pass on. An escalator clause in an employment contract may allow for wage increases to keep pace with inflation. (in Stock Market Dictionary)

What else does escalator clause mean?

  • An agreement or regulation that gives a beneficiary or party the right to an increase or excuse payment for an additional amount if there is a specified change in financial circumstances, like an increase of cost of living. (in Merlin Dictionary)