We demonstrate a photonic integrated Mach-Zehnder interferometric sensor, utilizing a plasmonic stripe waveguide in the sensing branch and a photonic variable optical attenuator and a phase shifter in the reference arm to optimize the interferometer operation. The plasmonic sensor is used to detect changes in the refractive index of the surrounding medium exploiting the accumulated phase change of the propagating Surface-Plasmon-Polariton (SPP) mode that is fully exposed in an aqueous buffer solution. The variable optical attenuation stage is incorporated in the reference Si3N4 branch, as the means to counter-balance the optical losses introduced by the plasmonic branch and optimize interference at the sensor output. Bulk sensitivity values of 1930 nm/RIU were experimentally measured for a Mach Zehnder Interferometer (MZI) with a Free Spectral Range of 24.8 nm, along with extinction ratio of more than 35 dB, demonstrating the functional benefits of the co-integration of plasmonic and photonic waveguides.