President Ferdinand R. Marcos Jr. signed into law today, November 7, 2024 the Enterprise-Based Education and Training (EBET) Framework Act. The passage of RA 12063 institutionalizes the EBET Framework designed to bridge the gap between education and industry demands, significantly enhancing workforce skills and employability of Filipino workers.
“With the EBET Framework Act, we are empowering Filipinos to thrive in a rapidly changing economy. This law will bring real benefits, making skill development more accessible and targeted, and allowing our people to seize better employment opportunities, and making our workforce among the most competitive in the region,” said EDCOM 2 Commissioner Senator Joel Villanueva, sponsoring the measure.
“This law will make the lives of our people better, and make their burdens lighter”, he continued.
“Institutionalizing the EBET framework is a significant step in our efforts to boost the job readiness of our tech-voc graduates. Through this law, we will see an increase in the number of enterprise-based trainees, which will also help us address issues of jobs-skills mismatch,” EDCOM 2 Co-Chairperson Senator Win Gatchalian said.
EDCOM 2 findings from its Year One Report show that many graduates enter the workforce without the competencies needed for specific jobs, which contributes to high underemployment rates and limiting the country’s economic competitiveness. EDCOM 2 noted that: there is a need to integrate industry-driven training standards to ensure the Filipino workforce is equipped to meet the demands of the industries.
The EBET Act introduces comprehensive training pathways designed to meet varied skill levels and industry needs, each aimed at enhancing Filipino workers’ readiness for the job market. With guidance from TESDA, these programs ensure that training aligns closely with competency standards developed by industry boards, making the workforce more adaptable and aligned with current industry demands.
To encourage private sector commitment, registered programs will be eligible for substantial incentives. Enterprises with TESDA-registered programs may deduct up to 75% of their training expenses from taxable income starting January 2028. Additionally, EBET trainees can avail of scholarships under the Training for Work Scholarship Program and the Tulong-Trabaho Fund, expanding opportunities for those who need financial support to access high-quality training.
As one of the Commission’s priority measures, RA 12063 is co-authored by EDCOM 2 Commissioners Senator Joel Villanueva, Senator Sherwin Gatchalian, Representative Mark Go, Representative Roman Romulo, and Representative Jude Acidre.
“EBET has been one of the EDCOM2’s key priorities, given the critical role it plays in preparing our workforce for the labor market. With this bill, we’re ensuring that EBET policies are not only aligned with industry needs but are also flexible enough to adapt to the challenges faced by both stakeholders and learners.” said EDCOM 2 Executive Director Karol Mark Yee.
“At the end of the day, what we want is an employable workforce. Through the passage of the EBET Act, we can address job-skills mismatches. We are giving our workers the tools they need to thrive in today’s competitive job market,” said EDCOM 2 Co-Chairperson Rep. Mark Go, one of the authors, who also Chairs the House Committee on Higher and Technical Education.
