New Enterprise-based Training and Education Law to bridge job-skills gap, boost employment

A newly signed law seeks to address the long-standing issue of job-skills mismatch in the Philippines by institutionalizing enterprise-based education and training (EBET) programs.

President Ferdinand “Bongbong” Marcos Jr. on November 7 signed Republic Act No. 12063, known as the EBET Framework Act, which focuses on aligning workforce training with industry needs to address the persistent job-skills mismatch in the Philippines and enhance employment opportunities for Filipino workers.

“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,” the president stressed.

The Technical Education and Skills Development Authority (TESDA) praised the EBET Act, highlighting its role in promoting experiential and immersive learning to address job-skills mismatches in priority industries such as information technology, construction, manufacturing, and healthcare.

“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,” said TESDA Director General Jose Francisco “Kiko” Benitez.

Benitez further noted that enterprise-based training has consistently led to high employment outcomes, with about 85% of TESDA’s enterprise-based training graduates finding work in 2022.

He added that TESDA would seek a ₱4 billion allocation from Congress in 2025 to support over 100,000 EBET scholars.

“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 to support at least 105,000 EBET scholars,” Benitez said.

To support trainees, TESDA will offer scholarships through the Tulong Trabaho Fund and the Training for Work Scholarship Program, with participating enterprises eligible for income tax deductions on training expenses—up to 75% by 2028.

The EBET Framework mandates competency-based and industry-driven training, ensuring that trainees develop the necessary skills for employment in key sectors.

The law also emphasizes the occupational safety and rights of trainees, guaranteeing a secure and meaningful learning environment.

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