cost of living clause


cost of living clause
A provision, commonly in labor agreements, and also in certain pension, retirement, and disability benefit programs, giving an automatic wage or benefit increase tied in some way to cost-of-living rises in the economy. Cost of living is usually measured by the consumer price index (CPI) (q.v.). May also exist in certain long term leases where, for example, rent increases are tied to consumer price index

Black's law dictionary. . 1990.