PurposeThe purpose of this research paper is to identify the sources of job stress and their impact on health of employees.Design/methodology/approachA total of 650 employees of power sector in Punjab (India) responded to the survey. Exploratory factor analysis and ANOVA were performed. Further, post hoc was conducted to find out which variable differs significantly.FindingsThe findings indicates that five parameters, namely workload, working environment, concentration, positivity and future perspective are the factors that are responsible to create stress in employees. There is great impact on health as “frequency of visit to a doctor” and “numbers of diseases” they have are high and “employee's time spared for exercise” is less.Research limitations/implicationsSince the survey was conducted only in power sector, it is difficult to generalize the results. However, the findings from this study will provide the factors that cause job stress and how they impact on health of employees.Practical implicationsThe result indicates the impact of job stress on health of employees in power sector. Current research suggests that job stressors should be treated timely to minimize the impact of job stress.Originality/valueWhile previous research has focused on the effect of stress on health, the present study provides evidence of the relationship between the sources of job stress and health, particularly in power sector in Punjab. This study would be contributing to the existing literature in Indian context.