Marcos signs enterprise-based training law to address jobs mismatch

AUGUST 23, 2018 Student training under the Technical Education and Skills Development Authority (TESDA) Cookery National Certificate Level II Course at the TESDA Women's Center in Taguig City. INQUIRER PHOTO/LYN RILLON

President Marcos on Thursday signed into law Republic Act No. 12063, to be called the Enterprise-Based Education and Training (EBET) Framework Act, that aims to boost company-based skills training programs for Filipino workers.

Mr. Marcos said the law would address training and skill mismatches and improve the country’s employment situation.

Under RA 12063, firms that conduct apprenticeship, leadership, and dual-tech training programs can avail of fiscal incentives in exchange for offering EBET programs.

Businesses that will implement EBET programs can enjoy income tax cuts from 50 to 75 percent of actual training expenses from 2025 to 2028.

Donations or financial aid for technical vocational institutions that run EBET programs will be also exempt from some taxes and duties.

“This targeted assistance will make it possible for even the smallest businesses to provide high-quality, industry-aligned training, empowering them to uplift their communities and the economy as a whole,” the President said.

In a statement, Technical Education and Skills Development Authority (Tesda) director general Jose Francisco Benitez said that based on data, enterprise-based training yields high employment for its graduates, about 85 percent in 2022.

EBET benefits

Benitez added that they have asked Congress for additional funding so that Tesda may implement the EBET Act by 2025.

“We are hoping our good senators and members of the House will allocate at least P4 billion to support at least 105,000 EBET scholars,” he said.

According to Benitez, “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.”

RA 12063 aims to rationalize different enterprise-based education and training under one cohesive structure to address a broad range of skills and professional levels.

The President noted that in some cases, those who finished livelihood programs still do not find employment using the skills they learned.

“That is why it is very important to synchronize our training and our skills training with the actual requirements of industry and the labor market. That’s why the partnership between private and public is critical,” Mr. Marcos said.

He added that the law would “provide Filipino workers with accessible and relevant skills training, bridging the capabilities of individuals with the demands of industry.”