This issue has been debated by scholars from past to the present. There are three positions generally held by scholars and jurists, belonging to various schools in regards to this issue.

The standard position of the hanafi school has been that no payment can be made for reading or teaching of the Qur’an. Shafi’ites, on the other hand, consider it as permissible. There is a third position held by some scholars, belonging to various schools, which allows it with conditions. It has been clearly formulated by Imam Ahmad as follows: A person cannot say that I will lead salah or taraaweeh as long as you pay me so much. Imam Ahmad asks, “Who would want to pray behind such a person anyway?”  If, however, he does not put such a condition, there is no harm in paying him an honorarium in appreciation for his work.

The above differences notwithstanding, there has been a growing agreement among scholars that the imams, teachers of the Qur’an, etc. can be paid from the public treasury; it has been an accepted practice of Muslims for a long time. Based on this, I find no reason for us not to extend the same to countries where Muslims live as minorities, where no public treasury exists. In such cases the funds collected by the center or mosque can be used to pay such people.

There is also a general understanding among scholars that in these times where there is a general lack of incentives and motivations to take up such services, it is definitely permissible, if not highly recommended, to pay such people, especially if they are not well to do.

In conclusion: Although it is considered undesirable for a person to demand a payment for leading people in taraaweeh, or any salah for that matter, it is acceptable if he is paid an honorarium in appreciation for his service. This seems to me the most reasonable position for us Muslims living in the West or North America to follow.  May Allah inspire in us true love for His Book and respect for those who retain it and transmit it-aameen.