President Marcos on Thursday enacted the Enterprise-Based Education and Training (EBET) Framework Act, a landmark piece of legislation intended to enhance skills development and tackle job-skills mismatches in the Philippines.
Also known as Republic Act No. 12063, its authors envision creating a cohesive system for enterprise-based training by integrating various programs under one framework.
“By establishing a framework on career advancement and industry-relevant skills, this law directly addresses the issues of the lack of formal training and skill mismatches, ensuring that every Filipino can contribute and benefit from our nation’s growth,” Mr. Marcos said during signing ceremonies at Malacañan Palace.
The President stated that the EBET Act will offer Filipino workers accessible skills training that aligns their capabilities with industry needs.
“By opening pathways to professional growth, employment opportunities, and entrepreneurship, we are answering the call for quality employment,” he added.
Furthermore, the EBET Act will expand training opportunities for Filipinos seeking to acquire, upgrade, or refine skills, preparing them to compete in both domestic and global markets.
It complements the “Trabaho Para sa Bayan Act,” bolstering national efforts to drive economic growth, improve employment rates, and enhance individual career prospects.
Meanwhile, Jose Francisco Benitez, director general at the Technical Skills Education Development Authority (TESDA), called the new law a “game-changer.”
He noted that enterprise-based training programs yield strong employment outcomes, with TESDA data showing an 85 percent employment rate among its graduates in 2022.
Under the EBET Act, TESDA will offer scholarships through the Tulong Trabaho Fund and the Training for Work Scholarship Program to help enterprises cover training costs.
The legislation will also increase tax incentives offered to participating companies.
By 2028, a 75 percent income tax deduction on training expenses will be allowed, up from the previous 50 percent.
“This law strengthens the Philippines’ commitment to developing an agile, skilled workforce ready to meet both local and international labor demands,” Benitez said.
TESDA is also seeking an additional P4 billion from Congress to fund the EBET program in 2025, aiming to support 105,000 scholars.
For his part, House Speaker Martin G. Romualdez pointed out the EBET Law’s signing is particularly timely given that the country’s unemployment rate has fallen to 3.7 percent in September, from four percent in August, and 4.5 percent in September 2023.
“The enactment of the EBET bill will allow the government, with the collaboration of the private sector, to keep the number of jobless Filipinos down through various training and up-skilling programs,” he said during the signing ceremonies.
“As I have always declared, as in inflation, the continuing challenge for us is to ensure that joblessness remains at the lowest level possible. The EBET Law will help us accomplish this task,” Romualdez added.
He explained that both new entrants to the labor force and those already employed but seeking to upskill are qualified to participate in the EBET program, as long as they have the aptitude to participate in the training, and can submit a fit-to-work certificate.
“We are hopeful that the law could effectively address these issues so we can prepare our workers for the demands of the local and foreign market, and assist them in finding new or additional employment so they can help their families,” Romualdez stressed.
Editor’s Note: This is an updated article. Originally posted with the headline: “Marcos signs Enterprise-Based Education Act into law”
