By Brian Campued and Dean Aubrey Caratiquet
Reaffirming the administration’s commitment to fostering a globally-competitive workforce, President Ferdinand R. Marcos Jr. on Thursday signed a new measure to address job-skill mismatch and boost career growth of the Filipino labor force.
During the ceremonial signing of the Enterprise-Based Education and Training (EBET) Framework Act in Malacañang, the President said that the new law would expand training opportunities to Filipino workers to support their career progression and meet industry demands.
“In signing the EBET Framework Act into law, we lay a stronger foundation for a workforce that is agile, skilled, and ready to meet the demands of a rapidly evolving world,” Marcos said.
With the EBET law, employers will be provided with incentives to encourage them to offer apprenticeship programs for low to mid-level and higher-level skills for new entrants to the labor force.
Marcos also said the new law would strengthen partnerships with the private sector to align training programs with real-world industry needs.
“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 is critical,” he said.
Aside from enhancing the skills of the workforce in partnership with the private sector, the law would strengthen, rationalize, and harmonize various EBET training modalities under one framework.
“Because if we are successful in doing this, before a student or a trainee is finished with their training, there already is an available space in the labor market waiting for them, specifically defined by industry and saying what we need are workers with these specific skills,” Marcos said.
Toward better employment opportunities
The Chief Executive also expressed optimism that the EBET law would help improve the country’s employment figures.
On Wednesday, the Philippine Statistics Authority (PSA) reported that the Philippine employment rate rose to 96.3% in September 2024 with the unemployment rate further declining to 3.7%.
“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,” Marcos said.
“By opening pathways to professional growth, employment opportunities, and entrepreneurship, we are answering the call for quality employment and fostering a globally competitive workforce,” he added.
Meanwhile, House Speaker Martin Romualdez lauded the signing of the EBET law.
“The enactment of the EBET bill will allow the government, with the collaboration of the private sector, to keep the number of jobless Filipinos down through various training and up-skilling programs,” Romualdez said.
He said that the signing of the law is timely following the report of lower unemployment rates recently released by the Philippine Statistics Authority.
“We are hopeful that the law could effectively address these issues so we can prepare our workers for the demands of the local and foreign market, and assist them in finding new or additional employment so they can help their families,” he stressed.
Provisions of EBET Law
Under the EBET law, workers eligible to participate in the EBET program are those who are either new entrants to the labor force or employed workers who opt to undergo training through an EBET Program to acquire and/or upgrade skills, as well as obtain entrepreneurial know-how.
Among other qualifications, an EBET applicant must possess the appropriate aptitude and capacity to follow instructions, and submit a recent fit-to-work certificate, which shall be provided free of charge by a Department of Health-recognized health clinic or licensed physician.
If this is not feasible, the firm or entity screening the applicant shall extend such service free of charge.
A trainee under a general EBET program shall receive a training allowance from the enterprise, which shall be enough to cover transportation costs, meals, and any other expenses that may be agreed upon between the enterprise and the trainee.
Training hours shall be determined by the enterprise, which shall not exceed eight hours per day. A trainee who is required to work overtime (which shall not exceed two hours a day) shall be paid an additional 25 percent of the hourly allowance rate for every hour of extra work.
A trainee under an apprenticeship program shall receive a training allowance not lower than 75 percent of the applicable minimum wage rate.
In programs exceeding one year, an apprentice shall be entitled to a yearly increase commensurate with labor market wage rates in the sector, and subject to evaluation of performance.
In case a worker is on an up-skilling training, he shall be entitled to full wages and benefits, including overtime pay and night shift differential.
The EBET law mandates that program graduates shall be given preference in the hiring of workers by the enterprise that implemented the EBET program and shall be exempt from probationary employment.
For financial assistance, EBET trainees may avail themselves of the “Tulong Trabaho Fund” under Republic Act No. 11230 or the “Tulong Trabaho Law.”
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