Employees who are paid a certain amount for each item they produce are paid according to a __________.

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Employees who are compensated based on the number of items they produce are operating under a piece-rate plan. This method of payment incentivizes productivity by offering a set payment for each unit or item completed. It aligns the employee's earnings directly with their output, encouraging them to work efficiently and produce more. This structure is commonly found in manufacturing and agriculture where quantifiable output can be easily measured.

In contrast, a commission plan typically relates to sales roles where employees earn a percentage of the sales they generate, not based on production of physical items. An hourly wage involves payment based on the number of hours worked, regardless of output. A salary structure involves a fixed regular payment, which does not fluctuate based on the quantity of work performed or products created. Thus, the piece-rate plan is the most accurate term to describe pay based on production output.

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