PHILIPPINES: EDCOM 2: New EBET law to open doors to industry-led training and ramp up upskilling

February 28, 2025

EDCOM 2: New EBET law to open doors to industry-led training and ramp up upskilling

The Second Congressional Commission on Education (EDCOM 2) commended the Technical Education and Skills Development Authority (TESDA) for the swift completion and

signing of the Implementing Rules and Regulations of the Enterprise-Based Education and Training (EBET) Framework Act (Republic Act 12063), today, February 28, 2025.

The shift towards industry-led training has been one of the Commission's priorities since 2023, consistent with the recommendations of the first EDCOM. Studies have shown that despite the superior labor market outcomes of EBET graduates, with an employment rate of 85.48%, its potential has been hampered by many dead-ends in implementation. This has led to low uptake, with only 9% of TVET enrollees falling under enterprise-based training. This prompted the EDCOM Commissioners, Senator Joel Villanueva, Senator Sherwin Gatchalian, Rep. Mark Go, Rep. Roman Romulo, and Rep. Jude Acidre to file Senate Bill No. 2587 and House Bill No. 7400, leading to the passage of the law last November 7, 2024.

Senator Joel Villanueva, principal author and sponsor of the law and EDCOM 2 Commissioner, shared his enthusiasm on the signing of the law's IRR. "As we roll out the EBET in workplaces, our concrete bridging approach to evolve the skills set of our workers as industries shift to AI and use of new technologies, we expect to close the gap in the widening jobs-skills mismatch," Villanueva stated.

Representative Mark Go, Chairperson of the House Committee on Higher and Technical Education and Co-chairperson of EDCOM 2, emphasized the economic implications of the Act. "This law creates a crucial linkage between training initiatives and industry needs, not just enriching skill sets but also propelling our economic sectors forward, promoting widespread growth and development", he said.

TESDA Director General and former EDCOM 2 Commissioner Kiko Benitez, who also co-authored the bill while in the House, underscored the agency's efforts to tailor TVET education to market demands. "This law exemplifies our dedication to synchronizing educational training with real-world industry requirements, setting the stage for TESDA to offer training to trabaho--or relevant, high-quality training that directly translates to job opportunities", Benitez said.

The new EBET framework institutionalizes enterprise-led TVET programs, which are categorized into general training, which focuses on low- to mid-level skills; apprenticeships, covering advanced skills; and upskilling programs catering to employees seeking to enhance their skills. It promotes public-private partnerships to develop and implement training modules and competency standards. This ensures that the modules are aligned with the needs of industry.

Senator Alan Cayetano, another EDCOM 2 Co-Chairperson and Chair of the Committee on Higher, Technical, and Vocational Education, highlighted the EBET framework's innovative training methods, which offer a flexible approach that enables enterprises to design programs tailored to their specific operational needs. "Education should improve lives, and that means giving people real opportunities, not just diplomas," he said.

"With this framework, we can make sure skills training fits actual jobs, helping our kababayan move up, whether they're already working or just starting out. The goal is simple: education that leads to better careers and better lives," he added.

Under the new law, enterprises implementing registered EBET programs are eligible for tax incentives, including deductions of 50%-75% of training costs. Trainees will receive allowances covering transportation, meals, and other expenses; while apprentices earn at least 75% of the minimum wage.

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