indexed earnings

Definition

A situation where salaries or earnings are continually adjusted according to a specific index. A common occurrence of this is as "cost-of-living" salary increases, or when social security benefits which are adjusted according to purchasing power comparisons. Due to inflation over time, the purchasing power of each unit of currency diminishes, therefore salaries and other benefits must be increased in order to receive the same purchasing power as preceding years.
Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
indexed currency borrowings indexed loan