Several senators on Thursday expressed optimism that the passage of a measure institutionalizing and strengthening apprenticeship programs would help the country address gaps between education and industry demands. 

Senate President Francis “Chiz” Escudero said the newly signed Enterprise-Based Education and Training Framework (EBET) Act will address the job mismatches among Filipinos, making them more highly skilled and globally competitive workers.

President Ferdinand "Bongbong" R. Marcos Jr. signed Thursday at Malacañan Palace Republic Act No. 12063, or the Enterprise-Based Education and Training (EBET) Framework Act, institutionalizing and strengthening apprenticeship programs in the country.

Senator Joel Villanueva, principal author and sponsor of RA 12063, said the newly signed law serves as a significant milestone in the country's effort to address the perennial problem of job-skills mismatch. 

Villanueva cited data from the Philippine Statistics Authority (PSA), which revealed that the country’s unemployment rate has dropped to 3. 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 indicates the continuing issue of job-skills mismatch in the country.

“We wanted to create jobs that are sustainable and that give decency and integrity to our would-be workers,” Villanueva told reporters in a press briefing on Thursday.

Villanueva pointed out the EBET Act will ensure the country’s educational system keeps pace with the evolving demands of the labor market, helping bridge the skills gap that currently exists in many industries.

“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, but it will also boost innovations on micro-credentials and stackable qualifications of our workers' AI readiness and other emerging technologies,” he pointed out.

Meanwhile, Senator Sherwin Gatchalian, the co-author of the measure, said the newly signed measure seeks to strengthen, rationalize, and harmonize programs, such as apprenticeship, learnership, and the dual training system, under a competency-based and industry-driven EBET framework.

The Second Congressional Commission on Education (EDCOM) II earlier flagged that enterprise-based training and apprenticeship programs remain the least popular modality in technical-vocational education and training (TVET) despite their efficacy in providing skills and guaranteeing superior labor market outcomes. 

The Technical Education and Skills Development Authority (TESDA) previously targeted increasing the share of enterprise-based training from 4 percent in 2016 to 40 percent in 2022. 

In 2022, however, enterprise-based trainees only accounted for 9 percent of total TVET enrollment. 

“An Asian Development Bank study on TVET pointed out that because some skills may be irrelevant because of rapid technological change, enterprise-based training offers an edge because it is aligned with rapidly evolving workplace and workshop needs,” Gatchalian stressed. 

EBET Program refers to technical-vocational training delivered by enterprises, which refer to private individuals, partnerships, corporations, or entities. 

The newly signed law mandates sectors with recognized industry boards to develop and recommend EBET programs for their respective industries for the approval and adoption of the TESDA. 

The TESDA shall then approve the EBET programs, as recommended, not later than 30 days from submission. 

Gatchalian also emphasized that under the law, enterprises are mandated to ensure the safety and security of trainees pursuant to the Safe Spaces Act.

To encourage private sector commitment, registered programs will be eligible for substantial incentives. 

Enterprises with TESDA-registered programs may deduct up to 75 percent of their training expenses from taxable income starting January 2028. 

Additionally, EBET trainees can avail of scholarships under the Training for Work Scholarship Program and the Tulong-Trabaho Fund, expanding opportunities for those who need financial support to access high-quality training.