TESDA hails signing of new law on enterprise-based training

November 07, 2024

The Technical Education and Skills Development Authority (TESDA) lauded President Ferdinand “Bongbong” R. Marcos Jr. for signing today a landmark law promoting enterprise-based training.

Secretary Jose Francisco “Kiko” Benitez, Director General of TESDA, led TESDA senior officials and technical-vocational education and training (TVET) stakeholders in witnessing the ceremonial signing of the Republic Act No. 12063, or the “Enterprise-Based Education and Training (EBET) Framework Act”, in Malacañang.

Secretary Benitez thanked the President for his support of this game-changer measure, which rationalizes different EBET delivery modalities and increases the tax incentive for participating enterprises to encourage more businesses to offer general EBET (on-the-job training to acquire NC II certification), apprenticeships (for NC III certifications and above), and upskilling for workers.

“The EBET Law opens up opportunity for experiential and immersive learning to acquire skills needed by industry, addressing job-skills mismatch in the labor market,” Secretary Benitez stressed.

“EBET programs create training-to-trabaho pathway for trainees, enhancing employment outcomes for graduates. Based on TESDA data, enterprise-based training yields high employment for its graduates, about 85% in 2022,” the recently appointed Director General added.

The law also emphasizes collaboration among TESDA and industry, recognizing the indispensable role of enterprises in designing training programs according to the workforce needs of priority industries, such as IT-BPM, construction, manufacturing, transportation and logistics, creative industries, healthcare, energy and tourism.

Pursuant to the law, TESDA will provide scholarships for EBET trainees under the Tulong Trabaho Fund established under Republic Act No. 11230, and Training for Work Scholarship Program. Revenues from TESDA scholarship grants will help enterprises in compensating trainers, improving facilities and upgrading equipment for their EBET programs.

“For 2025, we are asking Congress for additional funding for the full implementation of the EBET Law. We are hoping our good Senators and Members of the House will allocate at least 4 billion pesos to support at least 105,000 EBET scholars,” Secretary Benitez said.

The law also provides for establishment of a one-stop shop and/or an online portal to ease the availment of participating enterprises of income tax deductions, which will be equivalent to 75% of actual training expenses starting January 1, 2028, from 50% under the old enterprise-based training law.

“Ultimately, the EBET Act will contribute to the development of an agile, competitive, highly-skilled Filipino workforce prepared to meet both domestic and global labor demands,” Secretary Benitez said in closing.