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Is it permissible for an employee to benefit personally from the housing allowance provided by the company if he is unable to secure a quotation when requested to relocate? And if that is not permissible, then what is the ruling on paying the hotel rent without actually staying there?

1 min readAlso available in العربية

The reference for the matter of disposing of the housing allowance is the company's regulations and its officials, for an agent does not have the authority to act except as permitted by their principal. If the company does not allow the allowance to be spent except on renting accommodation, and does not permit the employee to benefit from it for themselves, then it is not permissible to take the hotel fare for oneself or to pay the fare to the hotel while abandoning the designated accommodation. Therefore, it is necessary to refer to the officials authorized to grant permission before any disposal of the housing allowance.

Summarized from the full answer at Ftawy · reviewed Sep 2, 2026

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