Republic Act No. 12063, to be called the Enterprise-based Education and Training (EBET) Framework Act, signed into law by President Ferdinand Marcos Jr. on Thursday, aims to boost company-based skills training programs for Filipino workers, which should address the training and skill mismatches and improve the country’s employment situation.
Under the EBET Act, firms that conduct apprenticeship, leadership, and dual-tech training programs can avail of fiscal incentives in exchange for offering EBET programs. Businesses that implement such programs can enjoy income tax cuts from 50 to 75 percent of actual training expenses, from 2025 to 2028. Donations or financial aid for technical vocational institutions that run EBET programs will also be exempt from some taxes and duties.
Technical Education and Skills Authority (TESDA) director general Jose Francisco Benitez said that based on data, enterprise-based training yields high employment for its graduates, about 85 percent in 2022. He added that they have asked Congress for additional funding so that TESDA may implement the EBET Act by 2025. He is hoping that P4 billion can be allocated to support at least 105,000 EBET scholars.
RA 12063 aims to rationalize different enterprise-based education and training under one cohesive structure to address a broad range of skills and professional levels.
The President noted that in some cases, those who finished livelihood programs still do not find employment using the skills they learned, making it important to synchronize the training with the actual requirements of the industry and labor market. The EBET Act is hoped to improve public-private partnership and benefit the stakeholders of the labor market.
EBET is another well-meaning law that could have a significant impact on Filipino lives and livelihoods, as long as it is implemented properly and sustainably. If the government is successful in encouraging businesses to provide the kind of training that they need to not only improve current employees, but also attract prospective ones, less time and effort is wasted by everybody on unnecessary training programs that do not bear much fruit for both employers and employees.
We are counting on our legislators to provide the budget required, and for TESDA to implement it properly, so Filipinos may enjoy the fruits of EBET as soon as possible.*
