Education is considered a key factor for of Human Capital formation which strengthens the society through skills, knowledge and as a result of that innovations take place. The Gary Becker and Mincer developed “Human Capital Model” which was based on relationship of income with level of education and experience. The present study investigates the effect of higher education and level experience on income of teaching staff of public sector educational institutes in Islamabad-Pakistan. There were 120 respondents randomly selected. The Ordinary Least Square (OLS) method was used to empirically examine the relationship among the variables. All coefficients of the variables found positively significant. The study concludes that increase in year of education and experience which ultimately increases income of the teaching staff. Therefore, the higher education plays a major role for enhancing income of teaching staffs of public sector educational institutes in Pakistan.