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Employee benefit plans
 12 Months Ended
Dec. 31, 2021
Retirement Benefits [Abstract]  
Employee benefit plans Employee benefit plans
The Company has employee benefit plans in the form of certain statutory and other programs covering its employees.
Defined benefit plans
In accordance with Indian law, the Company provides a defined benefit retirement plan (the “Gratuity Plan”) covering substantially all of its Indian employees. The Gratuity Plan provides a lump-sum payment to vested employees upon retirement or termination of employment in an amount based on each employee’s salary and duration of employment with the Company. The Gratuity Plan benefit cost for the year is calculated on an actuarial basis. The Company contributes the required funding for all ascertained liabilities to the Gratuity Plan. Trustees administer contributions made to the trust, and contributions are invested in specific designated instruments as permitted by Indian law. The Company’s overall investment strategy is to invest predominantly in fixed income funds managed by asset management companies and a small portion in equity funds. These funds further invest in debt securities such as money market instruments, government securities and public and private bonds. During the years ended December 31, 2019, 2020 and 2021, all of the plan assets were primarily invested in debt securities.
In addition, in accordance with Mexican law, the Company provides certain termination benefits (the “Mexican Plan”) to all of its Mexican employees based on the age, duration of service and salary of each eligible employee. The full-year benefit cost of the Mexican Plan is calculated on an actuarial basis.
17. Employee benefit plans (Continued)
In addition, certain of the Company’s subsidiaries organized or operating in the Philippines and Japan have sponsored defined benefit retirement programs (respectively, the “Philippines Plan” and the “Japan Plan”). The full-year benefit costs of the Philippines Plan and the Japan Plan are calculated on an actuarial basis. Company contributions in respect of these plans are made to insurer-managed funds or to a trust. The trust contributions are further invested in government bonds.
In addition, in accordance with Israeli law, the Company provides certain termination benefits (the “Israeli Plan”) to all of its Israeli employees based on the age, duration of service and salary of each eligible employee. The full-year benefit cost of the Israeli Plan is calculated on an actuarial basis. The plan contributions are further invested into insurer managed funds.
Current service costs for defined benefit plans are accrued in the year to which they relate on a monthly basis. 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 or over the average remaining life expectancies for inactive employees if most of the plan obligations are payable to inactive employees.
The following table sets forth the funded status of the Company’s defined benefit plans and the amounts recognized in the Company’s financial statements based on actuarial valuations carried out as of December 31, 2020 and 2021.
As of December 31,
20202021
Change in benefit obligation
Projected benefit obligation at the beginning of the year $80,561 $97,660 
Service cost 11,897 14,546 
Actuarial loss (Gain)6,843 (10,436)
Interest cost 5,297 5,497 
Liabilities assumed on acquisition/ transfer of employees180 — 
Benefits paid (6,388)(9,162)
Settlements— (4,328)
Curtailments— (181)
Effect of exchange rate changes (730)(1,814)
Projected benefit obligation at the end of the year $97,660 $91,782 
Change in fair value of plan assets
Fair value of plan assets at the beginning of the year$70,900 $93,809 
Employer contributions 24,523 12,907 
Actual gain on plan assets 5,370 4,831 
Benefits paid (6,287)(9,162)
Settlements— (3,495)
Effect of exchange rate changes (697)(1,915)
Fair value of plan assets at the end of the year$93,809 $96,975 
Funded status, end of year$(3,851)$5,193 
Amounts recognized in the consolidated balance sheets
Non-current assets (recorded under other assets-others)$10,063 $18,932 
Current liabilities (recorded under accrued expenses and other current liabilities-retirement benefits)(1,967)(1,746)
Non-current liabilities (recorded under other liabilities- retirement benefits)(11,947)(11,993)
Funded status, end of year$(3,851)$5,193 
The change in defined benefit obligation for the years ended December 31, 2020 and 2021 is largely due to changes in actuarial assumptions pertaining to discount rates.
17. Employee benefit plans (Continued)
Amounts included in accumulated other comprehensive income (loss) as of December 31, 2019, 2020 and 2021 were as follows:
As of December 31,
201920202021
Net actuarial loss $(21,490)$(24,669)$(13,399)
Net prior service credit / (cost)(717)(477)(300)
Deferred tax benefits6,171 7,065 3,206 
Other comprehensive income (loss), net$(16,036)$(18,081)$(10,493)

Changes in other comprehensive income (loss) during the year ended December 31, 2020 and 2021 were as follows:
As of December 31,
20202021
Net Actuarial (Loss) Gain$(5,891)$9,019 
Amortization of net actuarial loss2,242 1,379 
Deferred tax (expense) benefits894 (3,859)
Net prior service credit / (cost)219 170 
Curtailment— 181 
Settlements— 519 
Effect of exchange rate changes 491 179 
Other comprehensive income (loss), net$(2,045)$7,588 
Funded status for defined benefit plans
The accumulated benefit obligation for defined benefit plans in excess of plan assets as of December 31, 2020 and 2021 was as follows:
As of December 31,
20202021
Accumulated benefit obligation$15,441$12,496
Fair value of plan assets at the end of the year$5,446$3,161
The projected benefit obligation for defined benefit plans in excess of plan assets as of December 31, 2020 and 2021 was as follows:
As of December 31,
20202021
Projected benefit obligation $23,090 $18,806 
Fair value of plan assets at the end of the year$9,176$5,067
The amount of net projected benefit obligation and plan assets for all underfunded (including unfunded) defined benefit obligation plans was $13,914 and $13,739 as of December 31, 2020 and 2021, respectively, and was classified as liabilities in the consolidated balance sheets.
17. Employee benefit plans (Continued)
Net defined benefit plan costs for the years ended December 31, 2019, 2020 and 2021 include the following components:
Year ended December 31,
201920202021
Service costs$8,915 $11,897 $14,546 
Interest costs4,667 5,297 5,497 
Amortization of actuarial loss 1,384 2,461 1,549 
Expected return on plan assets (2,605)(4,589)(6,239)
One-time cost202 — — 
Settlements— — 519 
Net defined benefit plan costs$12,563 $15,066 $15,872 
Expected Contributions
The Company estimates that it will pay approximately $9,733 in fiscal 2022 related to contributions to defined benefit plans.
The weighted average assumptions used to determine the benefit obligations of the Indian Gratuity Plan as of December 31, 2020 and 2021 are presented below: 
As of December 31,
20202021
Discount rate 4.45 %-5.90%5.25 %-6.45%
Rate of increase in compensation per annum 5.20 %-9.00%4.60 %-8.00%
The weighted average assumptions used to determine the Indian Gratuity Plan costs for the years ended December 31, 2019, 2020 and 2021 are presented below: 
Year ended December 31,
201920202021
Discount rate8.30 %-8.40 %6.80 %-7.35 %4.45%-5.90%
Rate of increase in compensation per annum5.20 %-11.00 %5.20 %-11.50 %5.20%-9.00%
Expected long term rate of return on plan assets per annum7.50%7.50%7.00%-7.50%
The weighted average assumptions used to determine the benefit obligations of the Mexican Plan as of December 31, 2020 and 2021 are presented below:
As of December 31,
20202021
Discount rate7.20 %8.20 %
Rate of increase in compensation per annum5.50 %5.50 %
The weighted average assumptions used to determine the costs of the Mexican Plan for the years ended December 31, 2019, 2020 and 2021 are presented below: 
Year ended December 31,
201920202021
Discount rate9.40 %7.60 %7.20 %
Rate of increase in compensation per annum5.50 %5.50 %5.50 %
17. Employee benefit plans (Continued)
The weighted average assumptions used to determine the benefit obligations of the Philippines Plan as of December 31, 2020 and 2021 are presented below:
As of December 31,
20202021
Discount rate5.26 %7.67%
Rate of increase in compensation per annum5.00 %3.00%-6.00%
The weighted average assumptions used to determine the costs of the Philippines Plan for the years ended December 31, 2019, 2020 and 2021 are presented below: 
Year ended December 31,
201920202021
Discount rate7.53 %5.22 %5.26 %
Rate of increase in compensation per annum6.00 %6.00 %5.00 %
Expected long-term rate of return on plan assets per annum1.00 %2.40 %2.00 %
The weighted average assumptions used to determine the benefit obligation of the Japan Plan as of December 31, 2020 and 2021 are presented below:
As of December 31,
20202021
Discount rate0.17%—0.41%0.14%—0.81%
Rate of increase in compensation per annum0.00%0.00%
The weighted average assumptions used to determine the costs of the Japan Plan for the years ended December 31, 2019, 2020 and 2021 are presented below:
Year ended December 31,
201920202021
Discount rate0.076 %-0.269 %0.094%-0.271%0.17 %-0.41%
Rate of increase in compensation per annum0.00 %0.00 %0.00%
Expected long term rate of return on plan assets per annum0.00 %-1.77 %0.00%-1.77%1.77 %-3.12%
The expected returns on plan assets set forth above are based on the Company’s expectation of the average long-term rate of return expected to prevail over the next 15 to 20 years on the types of investments prescribed by applicable statute.
The Company evaluates these assumptions based on projections of the Company’s long-term growth and prevalent industry standards. Unrecognized actuarial loss is amortized over the average remaining service period of the active employees expected to receive benefits under the plan.
Investment and risk management strategy
The overall investment objective of the Company’s defined benefit plans is to match the duration of the plans’ assets to the plans’ liabilities while managing risk in order to meet defined benefit obligations. The plans’ future prospects, their current financial conditions, our current funding levels and other relevant factors suggest that the plans can tolerate some interim fluctuations in market value and rates of return in order to achieve long-term objectives without undue risk to the plans’ ability to meet their current benefit obligations.
Plan investments are exposed to risks including market, interest rate and operating risk. In order to mitigate significant concentrations of these risks, the assets are invested in a diversified portfolio primarily consisting of fixed income instruments, liquid assets, equities and debt.
17. Employee benefit plans (Continued)
The fair values of the Company’s plan assets as of December 31, 2020 and 2021 by asset category are as follows: 
As of December 31, 2020
Fair Value Measurements at Reporting Date Using
Quoted Prices in
Active Markets for
Identical Assets		Significant Other
Observable
Inputs		Significant Other
Unobservable
Inputs
Total(Level 1)(Level 2)(Level 3)
Asset Category
Cash21,707 21,707 — — 
Fixed income securities (Note a)63,444 — 63,444 — 
Other securities (Note b)8,658 — 8,658 — 
Total$93,809 $21,707 $72,102 $— 
As of December 31, 2021
Fair Value Measurements at Reporting Date Using
Quoted Prices in
Active Markets for
Identical Assets		Significant Other
Observable
Inputs		Significant Other
Unobservable
Inputs
Total(Level 1)(Level 2)(Level 3)
Asset Category
Cash14,059 14,059 — — 
Fixed income securities (Note a)80,612 — 80,612 — 
Other securities (Note b)2,304 — 2,304 — 
Total$96,975 $14,059 $82,916 $— 

(a)Includes investments in funds that invest 100% of their assets in fixed income securities such as money market instruments, government securities and public and private bonds.
(b)Includes investments in funds that invest primarily in fixed income securities and the remaining portion in equity securities.
The expected benefit plan payments set forth below reflect expected future service:
 
Year ending December 31,
2022$12,938 
202313,353 
202414,310 
202515,182 
202616,250 
2027 - 203183,964 
$155,997 

The Company’s expected benefit plan payments are based on the same assumptions that were used to measure the Company’s benefit obligations as of December 31, 2021.
17. Employee benefit plans (Continued)
Defined contribution plans
During the years ended December 31, 2019, 2020 and 2021, the Company contributed the following amounts to defined contribution plans in various jurisdictions:
Year ended December 31,
201920202021
India$29,729 $30,396 $37,508 
U.S.19,401 19,491 21,496 
U.K.19,260 18,643 19,874 
China18,816 16,436 24,988 
Other regions8,538 11,481 15,516 
Total$95,744 $96,447 $119,382 
Deferred compensation plan
On July 1, 2018, Genpact LLC, a wholly-owned subsidiary of the Company, adopted an executive deferred compensation plan (the “Plan”). The Plan provides a select group of U.S.-based members of Company management with the opportunity to defer from 1% to 80% of their base salary and from 1% to 100% of their qualifying bonus compensation (or such other minimums or maximums as determined by the Plan administrator from time to time) pursuant to the terms of the Plan. Participant deferrals are 100% vested at all times. The Plan also allows for discretionary supplemental employer contributions by the Company, in its sole discretion, which will be subject to a two-year vesting schedule (50% vesting on the one-year anniversary of approval of the contribution and 50% vesting on the second year anniversary of approval of the contribution) or such other vesting schedule as determined by the Company. However, no such contributions have been made by the Company to date.
The Plan also provides an option for participants to elect to receive deferred compensation and earnings thereon on either fixed date(s) no earlier than two years following the applicable Plan year (or end of the applicable performance period for performance-based bonus compensation) or following a separation from service, in each case either in a lump sum or in annual installments over a term of up to 15 years. Each Plan participant’s compensation deferrals and discretionary supplemental employer contributions (if any) are credited or debited with notional investment gains and losses equal to the performance of selected hypothetical investment funds offered under the Plan and elected by the participant.
The Company has investments in funds held in Company-owned life insurance policies which are held in a Rabbi Trust that are classified as trading securities. Management determines the appropriate classification of the securities at the time they are acquired and evaluates the appropriateness of such classifications at each balance sheet date.
The liability for the deferred compensation plan was $26,390 and $38,007 as of December 31, 2020 and December 31, 2021, respectively, and is included in “accrued expenses and other current liabilities” and “other liabilities” in the consolidated balance sheets. In connection with the administration of the Plan, the Company has purchased company-owned life insurance policies insuring the lives of certain employees. The cash surrender value of these policies was $26,832 and $38,584 as of December 31, 2020 and December 31, 2021, respectively. The cash surrender value of these insurance policies is included in “other assets” in the consolidated balance sheets. During the years ended December 31, 2019, 2020 and 2021, the change in the fair value of Plan assets was $1,296, $4,164 and $4,229, respectively, which is included in “other income (expense), net,” in the consolidated statements of income. During the years ended December 31, 2019, 2020 and 2021, the change in the fair value of deferred compensation liabilities was $1,062, $4,120 and $4,094, respectively, which is included in “selling, general and administrative expenses.”