Marcos signs law on enterprise-based training

PRESIDENT Ferdinand Marcos Jr. on Thursday signed into law the Enterprise-Based Education and Training (EBET) Framework Act to address persistent issues of jobs mismatches and to build a highly skilled, globally competitive Filipino workforce.

A priority measure under the Marcos administration, Republic Act (RA) 12063 or the EBET Act aims to address the persistent issue of job-skills mismatch that has hindered many Filipinos from securing employment or better-paying jobs.

"In signing the EBET Framework Act into law, we lay a stronger foundation for a workforce that is agile, skilled, and ready to meet the demands of a rapidly evolving world," Marcos said during the ceremonial signing of the law in Malacañang.

"By establishing a framework on career advancement and industry-relevant skills, this law directly addresses the issues on the lack of formal training and skill mismatches, ensuring that every Filipino can contribute and benefit from our nation's growth," he added.

The President said the EBET would provide Filipino workers with accessible, relevant skills training that bridges individuals' capabilities with industry demands.

It would also strengthen partnerships with the private sector "to align our training programs with real-world industry needs."

"The private sector will play a crucial role in ensuring that our workforce is properly equipped with the right skills to meet the demands of the industry," he said.

Marcos said he was optimistic that the new law would help further improve the country's employment situation.

"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. And that's why the partnership between private and public is critical," Marcos said.

"Because if we are successful in doing this, before a student or a trainee is finished with their training, there already is an available space in the labor market waiting for them, specifically defined by industry and saying what we need are workers with these specific skills," he added.

The President assured trainees of the government's continued support for upskilling efforts until they secure the jobs that match their skills.

He said by working closely with specific industries, training could be tailored to meet specific skill demands, ensuring job placements are available as soon as trainees complete their programs.

The President said the EBET Framework Act would better prepare Filipino workers for rapid changes, thereby increasing employment opportunities and reducing skills mismatches.

For those seeking further advancement, the EBET's Apprenticeship Programs offer specialized training to build higher-level competencies.

"Our collaboration with technical-vocational institutions, agencies will ensure that these standards remain relevant and consistently updated, preparing trainees for future roles in sectors experiencing rapid technological advancement," the President said.

Marcos said the new law included robust incentives to encourage micro and small businesses to get actively involved in workforce development.

"We provide fiscal incentives to enterprises that will implement EBET programs, including deduction from their taxable income equivalent to 50 percent of actual training expenses," Marcos said.

"Donations or financial aid for technical vocational institutions or for the conduct of an EBET program as certified by Tesda are exempted from some of these taxes and duties. A one-stop shop portal shall be established for the availment of these incentives," he added.

To support micro and small enterprises, the President said the government was introducing EBET support integrators who would guide these businesses in analyzing both market trends, designing training plans, and organizing necessary documentation.

"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," Marcos said.

"For our trainees, this act means a structured pathway towards employment and career progression. Beyond certifications, they will gain real-world experience that enhance[s] their readiness to contribute from Day One," he added.

Senate President Francis Escudero welcomed the passage of the EBET Act, saying it would institutionalize and strengthen apprenticeship programs in the country and help develop more Filipinos into highly skilled and globally competitive workers.

Escudero said the law is a crucial step toward "bridging the gap between education and industry and preparing the Filipino workforce to meet the demands of the Fourth Industrial Revolution."

With the EBET, employers will get incentives to offer apprenticeship programs for low — to mid-level and higher-level skills to new labor force entrants.

The EBET will also cover employees who want to engage in upskilling to support career progression.

"In a rapidly evolving labor market, one cannot afford to remain stagnant. The requirements of enterprises are constantly changing, so jobseekers and employees must adapt to survive," Escudero said.

The EBET, filed as Senate Bill (SB) 2587, was authored by Sen. Joel Villanueva, who sponsored it as head of the subcommittee on the Enterprise-based Education and Training to Employment Act.

Villanueva welcomed the passage of the law.

"The signing of this landmark legislation marks a crucial step in empowering our workforce and addressing unemployment and underemployment, which have long been a challenge in the Philippines," Villanueva said.

The law also raises the importance of safeguarding the rights and occupational safety of trainees, said the chairman of the Senate Committee on Labor, Employment and Human Resource Development.

"The EBET Act will ensure that our educational system keeps pace with the evolving demands of the labor market, helping bridge the skills gap that currently exists in many industries," Villanueva said.

"With the active participation of employers, technical-vocational institutions, and the government, we are creating a more robust and responsive training system," he said.

House Speaker Martin Romualdez lauded the passage of the EBET Law.

"The enactment of the EBET bill will allow the government, with the collaboration of the private sector, to keep the number of jobless Filipinos down through various training and upskilling programs," Romualdez said.

"As in inflation, the continuing challenge for us is to ensure that joblessness remains at the lowest level possible. The EBET Law will help us accomplish this task," he said.