Senators hailed on Thursday, November 7, the signing into law of Republic Act (RA) No. 12063, the Enterprise-Based Education and Training (EBET) Framework Act, which is considered a significant milestone in the country's effort to address the perennial problem of job-skills mismatch.
In a speech during a ceremonial signing of the measure in Malacañan, President Marcos expressed confidence that the country’s workforce will improve as the EBET Framework Act will strengthen the workforce by focusing on upskilling and development.
Senator Joel Villanueva, principal author and sponsor of the measure, expressed his gratitude to the President for entrusting him with the responsibility of leading the push for the urgent passage of this game-changing measure in the Senate which is also one of the priority measures in the Legislative-Executive Development Advisory Council (LEDAC).
“The signing of this landmark legislation marks a crucial step in empowering our workforce and addressing unemployment and underemployment, which has long been a challenge in the Philippines,” Villanueva, Chairperson of the Senate Committee on Labor, Employment and Human Resource Development, said.
According to the latest data from the Philippine Statistics Authority (PSA), the country’s unemployment rate has dropped to 3.7 percent in September 2024, from 4.5 percent in August 2024. However, the increase in underemployment to 11.9 percent in September 2024 from 11.2 percent in August 2024 clearly indicates the continuing issue of job-skills mismatch in the country.
“By focusing on enterprise-based education and training, we are not only aligning education with market needs, which will directly translate into more job opportunities, it will boost innovations on micro credentials and stackable qualifications of our workers' AI readiness and other emerging technologies," he said.
The Commissioner of the Second Congressional Commission on Education (EDCOM2) stated that EBET will help pave the way for more training programs focused on higher-level technology qualifications.
According to the Technical Education and Skills Development Authority (TESDA), only seven percent of their total courses currently offer these advanced technology programs, equivalent to a National Certificate (NC IV).
The EBET Act will further strengthen enterprise-based training with different training access points such as General EBET, apprenticeship and upskilling. These programs have proven to be among the most effective in producing skilled workers, with employment rates reaching as high as 92%, according to studies on the employment of Tech-Voc graduates from 2020 and 2021.
Under the EBET Framework, training programs will be competency-based and industry-driven, ensuring that trainees acquire the skills needed by employers in key sectors. Additionally, the law emphasizes the importance of safeguarding the rights and occupational safety of trainees, ensuring that they are provided with meaningful, secure learning experiences.
“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 added.
Escudero was the chair of the committee on higher, technical and vocational education, the mother committee of the subcommittee headed by Villanueva.
By developing and strengthening the knowledge and skills of individuals, Escudero said it will be easier for them to secure jobs that will be more fulfilling and meaningful and will also enhance their opportunities for career advancement.
Under the law, the duration of the EBET program shall not exceed three years. EBET trainees will receive allowances to cover for transportation, meals or any other expense that may be agreed upon by the employer and trainee.
Successful candidates who demonstrate competence for the full or partial qualifications shall be awarded a National Certification or a Certificate of Competency.
Incentives will be provided to the participating enterprises, including an additional deduction from their taxable income equivalent to 50% of actual training expenses. This shall go up to 75 percent in 2028.
An EBET one-stop shop or online portal will be established to facilitate the effective, efficient and more accessible availment of the incentives provided under the law.
Meanwhile, Senate President Francis "Chiz" Escudero said that the measure will institutionalize and strengthen apprenticeship programs in the country will pave the way for the development of more Filipinos into highly-skilled and globally-competitive workers.
He added that this is a key step toward “bridging the gap between education and industry, and preparing the Filipino workforce to meet the demands of the Fourth Industrial Revolution.”
“With a rapidly-evolving labor market, one cannot afford to remain stagnant. The requirements of enterprises are constantly changing so jobseekers and employees alike must adapt to survive,” Escudero said.