Direct Financial payments are of two types:

Time based or performance based

The correct answer is option (3)- Time based or performance based.

Direct financial payments are typically categorized into two types:

Time-based payments: These are payments made based on the amount of time an employee works, usually in the form of a salary or hourly wage. It means the compensation is tied to the number of hours or days worked.

Performance-based payments: These are payments made based on the employee's performance, such as bonuses, commissions, or incentive pay. This type of compensation is linked to achieving certain goals, targets, or outcomes.

So, time-based and performance-based payments are the two main types of direct financial payments.