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Employee Benefit Plans
 12 Months Ended
Dec. 31, 2024
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 India Plan is partially funded whereas the Philippines Plan is unfunded. The Company makes annual contributions to the India Plan established with insurance companies. 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, inclusive of interest which is declared periodically. The Company earned a return of approximately 7.2% per annum on the India Plan for the year ended December 31, 2024.
The benefit obligation has been measured as of December 31, 2024 and 2023. 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:
Change in projected benefit obligation
20242023
Projected benefit obligation as of January 1$24,237$21,531 
Service cost4,4293,799 
Interest cost1,5521,569 
Benefits paid(1,465)(1,382)
Prior service cost2 — 
Acquisition adjustments398 — 
Actuarial loss/(gain) (1)
1,546(1,166)
Effect of exchange rate changes(845)(114)
Projected benefit obligation as of December 31$29,854$24,237 
Change in plan assets
Plan assets as of January 1$17,134 $14,449 
Actual return1,369 1,220 
Employer contribution3,353 2,913 
Benefits paid (2)
(1,338)(1,343)
Effect of exchange rate changes(555)(105)
Plan assets as of December 31$19,963 $17,134 
Unfunded status as of December 31$9,891$7,103
Unfunded amount recognized in the consolidated balance sheets
Non-current liability (included under other non-current liabilities)$9,555 $6,925 
Current liability (included under accrued employee costs)336 178 
Total accrued liability$9,891 $7,103 
Accumulated benefit obligation as of December 31$20,181 $16,655 
Plan assets in excess/(shortfall) of accumulated benefit obligation as of December 31$(218)$479 
(1) During the years ended December 31, 2024 and 2023, actuarial gain was driven by changes in actuarial assumptions, offset by experience adjustments on present value of benefit obligations.
(2) Benefits payments were substantially made through the plan assets during the years ended December 31, 2024 and 2023.
Components of net periodic benefit costs recognized in consolidated statements of income and actuarial (gain)/loss reclassified from AOCI, were as follows:
 Year ended December 31,
 202420232022
Service cost$4,429 $3,799 $3,770 
Interest cost1,552 1,569 1,232 
Expected return on plan assets(1,237)(1,048)(872)
Amortization of actuarial (gain)/loss, gross of tax(602)(94)592 
Net gratuity cost$4,142 $4,226 $4,722 
Amortization of actuarial (gain)/loss, gross of tax$(602)$(94)$592 
Income tax effects on above33 (74)(179)
Amortization of actuarial (gain)/loss, net of tax$(569)$(168)$413 

The components of retirement benefits included in AOCI, excluding tax effects, were as follows:
 As of December 31,
 202420232022
Net actuarial gain/(loss)$(1,239)$777 $(462)
Net prior service cost(4)(5)(8)
Amount recognized in AOCI, excluding tax effects$(1,243)$772 $(470)

The weighted average actuarial assumptions used to determine benefit obligations and net gratuity cost were:
 Year ended December 31,
 202420232022
Discount rate6.9 %7.1 %7.3 %
Rate of increase in compensation levels7.3 %7.0 %7.8 %
Expected long-term rate of return on plan assets per annum7.3 %7.3 %7.3 %

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,
2025$3,916 
2026$3,943 
2027$4,229 
2028$3,657 
2029$3,401 
2030 to 2033$12,899 
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 3.0% of employee compensation within certain limits.
The Company’s contributions to various defined contribution plans was as follows:
Year ended December 31,
202420232022
Contribution to the 401(k) Plans$6,325 $5,967 $5,205 
Contributions to the defined contribution plans in foreign subsidiaries of the Company$28,070 $23,045 $18,215