Press Release - EDCOM 2: Clearer framework, better incentives: Enterprise-based education and training bill passes 3rd reading

Senate Bill No. 2587, also known as the Enterprise-Based Education and Training (EBET) Framework Bill successfully passed on third reading today, August 12, 2024. The bill is championed by Senator Joel Villanueva, Chair of Senate Committee on Labor, Employment, and Human Resources Development, and Commissioner of the Second Congressional Commission on Education (EDCOM 2).

"Senate Bill 2587 has the potential to make the lives of our people better, help our people move faster, and make our people's burdens lighter. I thank Sen. Gatchalian, our EDCOM 2 Commissioners, and all the members of this august chamber...Para sa bayan po ito". said EDCOM 2 Commissioner Senator Joel Villanueva during his speech last August 6, 2024.

The bill aims to strengthen the connection between education and industry by institutionalizing enterprise-based education and training programs. The bill has also been highlighted by the Marcos administration as a priority measure, through the Legislative-Executive Development Advisory Council (LEDAC).

Enterprise-based education and training (EBET) programs are delivered by companies, as opposed to community-based programs, which are primarily targeted towards marginalized communities, and institution-based programs, which are delivered by educational institutions and centers. Based on studies by EDCOM 2 and the Philippine Institute for Development Studies (PIDS), EBET program completers have a higher employment rate.

Villanueva noted that, "Data shows we're only producing 3-4% EBET graduates over the past years, despite the employment rate in TVET outputs ranging from 87-92%. By simplifying procedures and streamlining processes for enterprises that wish to participate in Enterprise-Based Education and Training, we aim to significantly increase the share of EBET trainees within total TVET outputs."

One of the key amendments in the bill introduces a special tax incentive for companies operating registered EBET programs, allowing them to deduct up to 75% of their actual training expenses from their taxable income. This provision is aimed at encouraging more enterprises to invest in the upskilling of their workforce.

Additionally, EBET trainees will