Each service at home has extremely generous pay (8)
I believe the answer is:
earnings
'pay' is the definition.
(I know that pay can be written as earnings)
'each service at home has extremely generous' is the wordplay.
'each' becomes 'ea' (abbreviation).
'service' becomes 'rn' (abbreviation for Royal Navy).
'at home' becomes 'in' ('I'm in' can mean 'I'm at home').
'has' says to put letters next to each other.
'extremely' means to remove the middle letters (only the extremes of the word are used).
'generous' with its middle taken out is 'gs'.
'ea'+'rn'+'in'+'gs'='EARNINGS'
(Other definitions for earnings that I've seen before include "Salaries, wages" , "Profits from a venture" , "made money" , "Monies obtained in return for labour or services" , "Grannie's (anag) -- income" .)