Learn New Skills and Save on Taxes: EBET Act Explained.

Highlights of the EBET Act’s Promise

EBET Act in a Nutshell

The EBET Act (RA 12063) is a groundbreaking legislation that enables enterprises to deliver customized, competency-based training aligned with TESDA standards, addressing the skills mismatch and improving employability. It offers workers direct access to industry-relevant certifications and gives businesses generous fiscal incentives, including tax deductions of up to 75% on training expenses by 2028. The Act promotes workforce development, competitiveness, and economic growth by fostering partnerships between enterprises, technical-vocational institutions, and the government. Scholarships and funding programs ensure inclusivity. UHY – ML Aguirre CPAs & Co. stands ready to guide enterprises in optimizing these benefits, ensuring compliance, and driving sustainable progress for businesses and the Filipino workforce.

Bridging Skills and Opportunities with the EBET Act

The Philippine workforce is on the brink of transformation. As industries evolve rapidly due to technological advancements and global economic shifts, employers increasingly seek workers with industry-relevant skills. At the same time, many Filipinos aim for stable, well-paying jobs but lack access to specific, targeted training. The recently enacted Enterprise-Based Education and Training Framework Act (Republic Act No. 12063), or the EBET Act, seeks to bridge this gap by empowering enterprises to provide hands-on, competency-based training directly aligned with industry needs.

President Marcos has highlighted the law’s potential to address skills mismatches and improve the employment situation nationwide. Under RA 12063, companies conducting apprenticeship, leadership, and dual-tech training programs can now avail of significant fiscal incentives, such as income tax cuts of 50-75% on training expenses between 2025 and 2028. The law also includes tax exemptions for donations and financial aid directed toward technical-vocational institutions implementing EBET programs, making high-quality training accessible even to smaller businesses and empowering them to uplift local communities and the economy.

High Employment Potential of Enterprise-Based Training

TESDA Director-General Jose Francisco Benitez noted that enterprise-based training has yielded a high employment rate for its graduates—about 85% in 2022 alone. To further amplify these results, TESDA aims to secure an additional PHP 4 billion in funding to support at least 105,000 EBET scholars by 2025. Through this investment, the EBET Act will build a competitive, highly skilled Filipino workforce prepared to meet local and international labor demands.

The EBET Act is designed with practicality, adaptability, and impact, leveraging enterprises’ resources and expertise to customize training to their needs. By enabling firms to register training programs with TESDA, the EBET Act offers a structured approach that aligns directly with job requirements and industry standards.

The benefits of the EBET Act are multifaceted. For Filipino workers, it provides direct access to industry-specific training and relevant certifications, smoothing their transition to employment and ensuring job security. For employers, the Act represents a long-term investment in human capital, enhancing productivity, reducing hiring costs, and improving employee retention. By incentivizing companies to invest in workforce development, the Act ensures that training programs are well-funded, consistent, and high quality. Additionally, financial incentives, including income tax deductions on training costs, make compliance attractive and sustainable for companies.

A Vital Step for the Future of the Philippine Workforce

The EBET Act addresses key issues of unemployment and underemployment by fostering a talent pipeline that aligns with industry requirements. As the economy faces digital transformation and automation, this law ensures that Filipino workers remain competitive globally. By strengthening partnerships between public and private sectors, the EBET Act creates a more agile, adaptable workforce that supports long-term national economic growth and resilience.

The EBET Act creates a win-win framework for workers, enterprises, and the economy as a whole. The EBET Act provides access to high-quality training programs to meet current employment needs. Those who complete EBET programs gain industry-valued qualifications and benefit from employment priority, enhancing job security and career growth. Additionally, scholarships under the Training for Work Scholarship Program and the Tulong-Trabaho Fund make this training accessible to those needing financial assistance.

Companies implementing EBET programs gain a pipeline of skilled workers trained to meet their specific operational requirements. These enterprises reduce hiring costs, decrease employee turnover, and improve productivity. With substantial fiscal incentives, including up to a 75% income tax deduction on training expenses starting in 2028, the EBET Act represents a sound investment in human capital, benefiting enterprises and the broader economy.

The EBET Act ensures that workforce skills align with industry demands, fueling the growth of various sectors across the Philippines. By fostering a competitive and adaptable labor force, it combats unemployment and underemployment, strengthens the nation’s economic resilience, and enhances the Philippines’ position in the global market. As EDCOM 2 Co-Chairperson Senator Win Gatchalian remarked, the EBET Act is key to addressing the jobs-skills mismatch and building a future-ready Filipino workforce.

Conclusions

The EBET Act (RA 12063) is a transformative law addressing the jobs-skills mismatch by empowering enterprises to deliver competency-based training aligned with TESDA standards. With significant fiscal incentives, industry-aligned certifications, and scholarship funding, the Act ensures inclusivity while fostering workforce competitiveness and economic growth. By bridging skills gaps, strengthening public-private partnerships, and preparing the Filipino workforce for local and global opportunities, the EBET Act paves the way for sustainable progress, benefiting workers, businesses, and the nation.

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