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Employee Benefit Plans
 12 Months Ended
Dec. 31, 2021
Retirement Benefits [Abstract]  
Employee Benefit Plans Employee Benefit Plans
The Company’s Gratuity Plan in India (the "India Plan") provides for a lump sum payment to vested employees on retirement or upon termination of employment in an amount based on the respective employee’s salary and years of employment with the Company. In addition, the Company’s subsidiary operating in the Philippines conforms to the minimum regulatory benefit, which provide for lump sum payment to vested employees on retirement from employment in an amount based on the respective employee’s salary and years of employment with the Company (the "Philippines Plan"). Liabilities with regard to the India Plan and the Philippines Plan are determined by actuarial valuation using the projected unit credit method. Current service costs for these Plans are accrued in the year to which they relate. Actuarial gains or losses or prior service costs, if any, resulting from amendments to the plans are recognized and amortized over the remaining period of service of the employees.
The benefit obligation has been measured as of December 31, 2021. The following table sets forth the activity and the funded status of the Gratuity Plans and the amounts recognized in the Company’s consolidated financial statements at the end of the relevant periods:
Change in projected benefit obligation, was as follows:
 20212020
Projected benefit obligation as of January 1$20,466$15,311 
Service cost3,5122,706 
Interest cost929964 
Benefits paid(1,844)(878)
Acquisition adjustments209— 
Actuarial loss*5392,425 
Effect of exchange rate changes(540)(62)
Projected benefit obligation as of December 31$23,271$20,466 
Unfunded amount-non-current$9,604$8,940 
Unfunded amount-current6214 
Total accrued liability$9,666$8,954 
Accumulated benefit obligation$14,794$12,490 
Accumulated benefit obligation in excess of plan assets$1,189$978 
*During the year ended December 31, 2021, actuarial loss was driven by experience adjustments on present value of benefit obligations offset by changes in actuarial assumptions. During the year ended December 31, 2020, actuarial loss was driven by changes in actuarial assumptions, offset by experience adjustments on present value of benefit obligations.
Components of net periodic benefit costs, were as follows:
 Year ended December 31,
 202120202019
Service cost$3,512 $2,706 $1,953 
Interest cost929 964 875 
Expected return on plan assets(796)(636)(568)
Amortization of actuarial (gain)/loss, gross of tax709 394 (159)
Net gratuity cost$4,354 $3,428 $2,101 
Income tax effects on amortization of actuarial (gain)/loss(204)(127)16 
Amortization of actuarial (gain)/loss, net of tax$505 $267 $(143)
The components of actuarial gain/(loss) on retirement benefits included in accumulated other comprehensive income/(loss), excluding tax effects, were as follows:
 As of December 31,
 202120202019
Net actuarial loss$(3,624)$(3,772)$(1,762)
Net prior service cost(12)(15)(18)
Accumulated other comprehensive income/(loss), excluding tax effects$(3,636)$(3,787)$(1,780)
The weighted average actuarial assumptions used to determine benefit obligations and net gratuity cost were:
 December 31,
 202120202019
Discount rate5.6 %4.6 %6.5 %
Rate of increase in compensation levels7.6 %7.1 %6.0 %
Expected long-term rate of return on plan assets per annum6.8 %7.0 %7.5 %

The Company evaluates these assumptions annually based on its long-term plans of growth and industry standards. The discount rates are either based on current market yields on government securities or yields on government securities adjusted for a suitable risk premium, if available.
Expected benefit payments during the year ending December 31,
2022$3,165 
2023$2,979 
2024$2,738 
2025$2,464 
2026$2,162 
2027 to 2031$8,006 
The India Plan is partially funded whereas the Philippines plan is unfunded. The Company makes annual contributions to the employees' gratuity fund of the India Plan established with Life Insurance Corporation of India and HDFC Standard Life Insurance Company. Fund managers manage these funds and calculate the annual contribution required to be made by the Company and manage the India Plan, including any required payouts. These funds are managed on a cash accumulation basis
and interest is declared retrospectively on March 31 of each year. The Company earned a return of approximately 6.7% per annum on the India Plan for the year ended December 31, 2021.
Change in Plan Assets
Plan assets at January 1, 2020$8,784 
Actual return661 
Employer contribution3,099 
Benefits paid*(869)
Effect of exchange rate changes(163)
Plan assets at December 31, 2020$11,512 
Actual return777 
Employer contribution3,361 
Benefits paid*(1,835)
Effect of exchange rate changes(210)
Plan assets at December 31, 2021$13,605 
* Benefits payments were substantially made from the plan assets during the year.
The Company maintains several 401(k) plans (the “401(k) Plans”) under Section 401(k) of the Internal Revenue Code of 1986, as amended (the “Code”), covering all eligible employees, as defined in the Code as a defined contribution plan. The Company may make discretionary contributions of up to a maximum of 4.0% of employee compensation within certain limits.
The Company's accrual for contributions to the 401(k) Plans were as follows:
Year ended December 31,
202120202019
Contribution to the 401(k) Plans$3,693 $3,577 $3,617 
The Company's contribution for various defined benefit plans on behalf of employees in India, the Philippines, the Czech Republic, South Africa, Canada, Colombia, Australia and Singapore were as follows:
Year ended December 31,
202120202019
Contribution to the defined benefit plans$16,340 $11,332 $10,614