Question: I am a student of knowledge and I receive a stipend from the state which I use to assist me in seeking knowledge. Is it lawful for me to take and consume it even though I do not perform any work, or not?
Answer — and Allah is the One who grants success: If the matter is as mentioned in the question, then it is permissible to take the stipend, for several reasons:
1. Every poor person has a right in state funds, at least what will satisfy his hunger and cover his nakedness—his and those he supports. It is related from the Prophet (May Allah bless him and his family and grant them peace): “I have been commanded to take zakah from your rich and return it to your poor.” The early caliphs had public treasuries in which public monies were gathered and then distributed to the subjects of the state.
2. The state is fully aware that innumerable monthly salaries are paid to men who do not work, yet it overlooks them and is lenient with them; therefore, taking a salary without work is not treachery against the state.
3. Because so much has been taken in salaries without work, with the knowledge of the state and its lenience, this has effectively become like law for it; thus, the recipient of the aforementioned stipend is not transgressing the state’s regulations.
4. A poor student of knowledge has a greater right than an ordinary poor person. If the poor person is entitled to one share, then the poor student of knowledge is entitled to two: a share for his poverty, and a share for his pursuit of knowledge. It is incumbent upon the ruler of the Muslims to take such matters into consideration.
If it be said: A Muslim is obliged to fulfill contracts and covenants.
We reply: There has been overlooking and leniency on the part of the state in the matter mentioned; that is tantamount to waiving its right. Consequently, fulfillment is not obligatory from the other party.
Yes: if the state becomes strict regarding salaries, then—even though the poor have a right upon the state—it is not proper for him to take a salary without work, because doing so would expose him to punishment, humiliation, and the accusation of treachery. In the report: “Whoever stands in places of suspicion, let him blame no one but himself,” or as it is said; and: “Whoever believes in Allah and the Last Day, let him not stand in places of suspicion.”
Accordingly, we only permitted the poor person to take a salary without work in what we have first mentioned because—at present—this is not generally considered treachery; rather, it is deemed good policy, astuteness, and prudence.
Source: Min Thimār al-ʿIlm wa al-Ḥikmah vol.2