Question: I want to know if travel & house allowances are halal in Islam, either in a government institution or in private sector?
Travel and housing allowances are the rights granted to employees in return for their work and travel at work. They are determined by the employers based on several factors including the cost of living, geographic location, scale of pay, and dependency/marital status. Employees are allowed to spend all of the allowance or spare some of it as long as they fulfill all aspects of the duties expected from them, unless they made an agreement with their company to return the allowance that they did not spend.
Misusing this right to make benefit from the company would be forbidden, as the Almighty Allah decrees:
“Do not wrong (others) and do not be wronged (by others)” (al-Baqarah 2:279).