SENATORS Joel Villanueva and Sherwin Gatchalian have urged the Technical Education and Skills Development Authority (TESDA) to fully implement the Enterprise-Based Education and Training (EBET) Law and overhaul its scholarship programs to improve industry participation, fund utilization and employment outcomes.
During Senate deliberations on TESDA’s proposed 2027 budget, the lawmakers raised concerns over gaps in the implementation of Republic Act No. 12063, or the EBET Law, including the sharp decline in enterprise-based training enrollment despite the law’s enactment.
Gatchalian, co-chairperson of the Second Congressional Commission on Education (EDCOM 2), said EBET enrollment fell by 51%, from 126,000 in 2024 to 61,000 in 2025. He noted that enterprise-based training has historically produced employment rates of between 85% and 90%.
TESDA Secretary Francisco Benitez attributed the decline to the transition from the previous certification and registration system to the requirements introduced under the new EBET framework.
Benitez said TESDA intends to raise EBET’s share of its scholarship portfolio to 30% to 40%, from about 12% currently, with an intermediate target of at least 18%.
Under RA 12063, enterprises play a leading role in delivering workplace-based training. The program covers general training, apprenticeships for advanced skills at National Certificate Level III and above, and upskilling programs for employed workers.
The law consolidated apprenticeship, learnership and other work-based training programs to expand industry-led skills development. However, enterprise participation remains limited and uneven.
From January to May 2026, only 490 EBET implementers were registered nationwide. Of these, 347, or 70.8%, were under General EBET; 98, or 20%, offered upskilling programs; and only 45, or 9.2%, offered apprenticeships.
Participation also varied widely across regions. Region III had 70 registered implementers, while Region VI had only six and Region XIII had none.
Lawmakers also pointed to delays or gaps in the rollout of other mechanisms required under the EBET framework, including support integrators for small and micro enterprises, an EBET one-stop shop, and EBET committees within implementing enterprises to address internal disputes.
TESDA said it was streamlining administrative requirements and developing a digital one-stop shop targeted for rollout in the fourth quarter of 2026.
The agency also said additional funding would be needed to establish EBET support integrators for small and micro enterprises that may lack the capacity to prepare training plans and comply with other program requirements.
Gatchalian warned that seemingly minor administrative requirements could discourage businesses from participating in EBET, particularly when they add to companies’ compliance burden.
“Tingnan natin ito, Secretary. Sa atin, maliliit na bagay lang pero these are things that we might have overlooked pero nakaka-discourage ng participants especially for EBET,” Gatchalian said.
Villanueva, meanwhile, called for a more predictable funding mechanism for EBET, saying the Tulong-Trabaho Fund should not be its sole financing source.
“I don’t think the Tulong-Trabaho Fund should be the only funding source for EBET. Baka magandang ihiwalay at lagyan natin ng sariling item ang EBET para mas malinaw kung paano natin ito popondohan and how we can improve its implementation,” Villanueva said.
Senators seek overhaul of TESDA scholarship system
The senators also called for a review and overhaul of TESDA’s scholarship programs, citing concerns over beneficiary targeting, fragmented program categories and information systems, scholarship benefits, fund utilization and the monitoring of employment outcomes.
TESDA currently serves about 1.5 million clients annually, up from around 800,000 during the pandemic. About 650,000 clients are covered by its scholarship programs, representing roughly 40% of its total clientele.
Its scholarship programs include the Training for Work Scholarship Program (TWSP), Tulong Trabaho Scholarship Program (TTSP), Special Training for Employment Program (STEP), and Private Education Student Financial Assistance (PESFA). TESDA also provides free tuition and additional allowances to students pursuing ladderized diploma programs in state-run technical-vocational institutions under the Universal Access to Quality Tertiary Education Act.
Villanueva also raised concerns over the declining obligation rate of TESDA scholarship funds, which dropped from 87.8% in 2023 to 84.4% in 2024 and 68% in 2025.
He asked TESDA to submit a catch-up plan to improve the utilization of scholarship funds.
Villanueva cited EDCOM 2’s recommendation to overhaul TESDA’s scholarship system, particularly in addressing concerns over beneficiary targeting, political influence, fragmented information systems and recurring financial management deficiencies.
He also emphasized the need to determine whether scholarship recipients ultimately secure employment.
“We should review and consider EDCOM’s recommendation to overhaul TESDA’s scholarship programs. Right now, there are concerns around targeting, political influence, fragmented information systems, and recurring financial management deficiencies, and we need to consistently track employment outcomes,” Villanueva said.
Benitez said TESDA was improving beneficiary identification through the Skills Passport and data-sharing arrangements with the Philippine Statistics Authority and the Department of Social Welfare and Development.
The initiative is intended to strengthen beneficiary verification and reduce reliance on self-identification and local certification.
The hearing also underscored the need to measure TESDA’s performance beyond employment rates. TESDA reported an overall employment rate of 81.64% among technical-vocational education and training graduates based on its existing six-month follow-up methodology.
The agency said it is also improving its tracking system to capture learner demographics and the quality of employment secured by its graduates.
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