Senate Bill No. 2587, also known as the Enterprise-Based Education and Training (EBET) Framework Bill successfully passed on third reading today, August 12, 2024. The bill is championed by Senator Joel Villanueva, Chair of Senate Committee on Labor, Employment, and Human Resources Development, and Commissioner of the Second Congressional Commission on Education (EDCOM 2).
“Senate Bill 2587 has the potential to make the lives of our people better, help our people move faster, and make our people’s burdens lighter. I thank Sen. Gatchalian, our EDCOM 2 Commissioners, and all the members of this august chamber…Para sa bayan po ito”. said EDCOM 2 Commissioner Senator Joel Villanueva during his speech last August 6, 2024.
The bill aims to strengthen the connection between education and industry by institutionalizing enterprise-based education and training programs. The bill has also been highlighted by the Marcos administration as a priority measure, through the Legislative-Executive Development Advisory Council (LEDAC).
Enterprise-based education and training (EBET) programs are delivered by companies, as opposed to community-based programs, which are primarily targeted towards marginalized communities, and institution-based programs, which are delivered by educational institutions and centers. Based on studies by EDCOM 2 and the Philippine Institute for Development Studies (PIDS), EBET program completers have a higher employment rate.
Villanueva noted that, “Data shows we’re only producing 3-4% EBET graduates over the past years, despite the employment rate in TVET outputs ranging from 87-92%. By simplifying procedures and streamlining processes for enterprises that wish to participate in Enterprise-Based Education and Training, we aim to significantly increase the share of EBET trainees within total TVET outputs.”
One of the key amendments in the bill introduces a special tax incentive for companies operating registered EBET programs, allowing them to deduct up to 75% of their actual training expenses from their taxable income. This provision is aimed at encouraging more enterprises to invest in the upskilling of their workforce.
Additionally, EBET trainees will now have access to training scholarships, including the Training for Work Scholarship Program and the Tulong-Trabaho Fund under Republic Act No. 11230, also known as the Tulong-Trabaho Act. This amendment is designed to ease the financial burden on trainees and encourage wider participation in EBET programs.
The bill also mandates industry boards to develop and recommend EBET programs for approval by the Technical Education and Skills Development Authority (TESDA) within thirty days from submission. This provision ensures that the programs are industry-relevant and meet the evolving demands of various sectors.
The bill also extends the training duration beyond the previous maximum of six months, with the new duration based on the complexity of the competencies to be learned as detailed in the Training Plan, with a cap of three years.
EDCOM 2 noted that the Philippines has one of the shortest lengths of apprenticeships in the world, with a maximum length of 6 months. In comparison, the maximum length of apprenticeships is 12 months in Malaysia, 24 months in Cambodia, and 72 months in Singapore.
The proposed legislation also clearly outlines three distinct types of EBET programs. The General EBET Program focuses on low- to mid-level skills, including those classified under National Certificates (NC) 1 and 2. The Apprenticeship Program targets higher-level competencies covered by National Certificates (NC) 3 and above, with trainees receiving a training allowance of at least seventy-five percent of the applicable minimum wage. Finally, the Upskilling Program aims to enhance the skills of current employees, regardless of NC level.
“EBET has been one of the priorities of the Commission. Findings from our Year One Report have highlighted the need to streamline and simplify policies related to enterprise-based education and training. With the rapidly evolving labor market, this bill ensures that EBET policies are more responsive to the unique needs and challenges faced by industry stakeholders as well as learners”, says EDCOM 2 Executive Director Karol Mark Yee.
“We are grateful to the leadership of Senator Villanueva, and the support of our Commissioners, Senators Gatchalian, Cayetano, and Pimentel, for this bill, which captures more than a year of studies and consultations conducted by EDCOM,” he continued.
The Senate Bill’s counterpart in the House of Representatives, HB 7400, authored by EDCOM 2 Co-Chairperson Representative Mark Go, who also Chairs the House Committee on Higher and Technical Education, was passed on 3rd reading last March 21, 2023.
