Enterprise-based education signed into law

MANILA, Philippines —  President Marcos yesterday signed a landmark law promoting enterprise-based training, a measure that he said would address jobs-skills mismatch and prepare the country’s workforce for the demands of a changing world.

Republic Act 12063 or the Enterprise-Based Education and Training (EBET) Framework Act aims to provide Filipino workers with opportunities to gain new skills and competencies or to upskill for career advancement so they could secure quality jobs or obtain entrepreneurial know-how.

It also seeks to meet the labor market’s demand for well-trained and adaptable human resources and strengthen and harmonize competency-based and industry-driven programs under the EBET framework.

Marcos described the newly enacted law as “visionary” and “certainly timely.”

“We reaffirm our commitment to addressing the skills gap in our labor force and pledge to forge a more adaptable, future-ready workforce,” the President said during the signing ceremony at Malacañang.

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

Marcos expressed optimism that the law would help improve the country’s employment figures.

“At its heart, the EBET Framework Act aims to provide Filipino workers with accessible and relevant skills training, bridging the capabilities of individuals with the demands of industry,” the Chief Executive said.

He added the act will provide “pathways to professional growth, employment opportunities and entrepreneurship, thus answering the call for quality employment and fostering a globally competitive workforce.”

Marcos said the government would tap private sector partnerships to align its training programs with real-world industry needs.

The private sector would play a crucial role in ensuring that the country’s workforce is properly equipped with the right skills to meet the demands of the industry, he added.

Marcos noted that the general EBET programs would target foundational and mid-level skills and provide participants with practical training to prepare them for immediate employment.

He acknowledged that while there have been many livelihood programs initiated, especially at the local government level, those who have gone through them still do not find work using the skills that they had just learned.

“And 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 (sectors) is critical,” the President said.

Marcos believes that the law will make a student or trainee job-ready as there is an available space in the labor market waiting for them that is specifically defined by the industry.

He said the EBET programs would prepare the workforce for opportunities within six months. For program participants seeking further advancement, apprenticeship programs will offer specialized training to build higher-level competencies.

The law will provide incentives to businesses that will implement EBET programs to encourage workforce development, including deductions from their taxable income equivalent to 50 percent of actual training expenses.

Donations or financial aid for technical-vocational institutions or for the conduct of an EBET program as certified by the Technical Education and Skills Development Authority will also be exempted from some taxes and duties.

The law also requires the government to establish a one-stop shop or online portal to facilitate the effective, efficient and accessible availing of the incentives.

“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.

Speaker Martin Romualdez lauded the signing of the EBET framework law, which he said will keep the unemployment in the country down.

“The enactment of the EBET bill will allow the government to keep the number of jobless Filipinos down through various training and upskilling programs,” Romualdez said.

He concurs with the President on the timing of the law signing, noting the reduction of unemployed Filipinos in September 2024 to 3.7 percent as reported by the Philippine Statistics Authority.

“As I have always declared, 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,” Romualdez said.  – Jose Rodel Clapano, Elizabeth Marcelo