In addition to the guaranteed hourly pay rate, John receives incentives for every item produced over the designated production standard. Which kind of incentive plan is used in this situation?

Piecework Plan

Explanation:

Piecework Incentive Plans are a sort of incentive programs through which the employee is paid on the basis of each production unit.

Staff are paid the amount of units generated at a certain rate per unit.

A base pay is sometimes paid to staff along with the piecework rate.