Professional Documents
Culture Documents
Presidential Decree 442 Senate Bill 1392 "Apprenticeship Training System Act of 2017" House Bill No. 5303 "Revised Apprenticeship Program Act
Presidential Decree 442 Senate Bill 1392 "Apprenticeship Training System Act of 2017" House Bill No. 5303 "Revised Apprenticeship Program Act
5303
“Apprenticeship Training System “Revised Apprenticeship Program
Act of 2017” Act
Objective To help meet the demand of the To establish an apprenticeship To establish reformed
economy for trained manpower. program that will ensure the apprenticeship program that will
To establish a national availability of qualified human ensure the availability of qualified
apprenticeship program through resource in critical, in-demand, and manpower in the field of critical
the participation of employers, hard-to-fill occupations and in-demand technical skills
workers and government and non- through active participation of all
government agencies workers, enterprises government
To establish apprenticeship agencies and NGOs concerned
standards for the protection of
apprentices.
Qualifications of an Apprentice a. Be at least 15 years of age a. Be at least 15 years of age, a. Be at least 15 years of age
b. Must possess vocational provided, that an b. b. Must possess vocational
aptitude and capacity for apprentice below 18 years aptitude and capacity for
appropriate tests of age shall not be exposed appropriate tests
c. Must possess the ability to to dangerous and c. Must possess the ability to
comprehend oral and hazardous occupations comprehend oral and
written instructions b. Must possess vocational written instructions
aptitude and capacity for
appropriate tests
c. Must possess the ability to
comprehend oral and
written instructions
Aptitude Testing of Applicants Any person to be engaged The Bipartite plant apprenticeship
as apprentice shall undergo committee shall have the primary
the appropriate aptitude responsibility of providing
exams which shall be appropriate aptitude examinations
administered by the BEAC. in selection of apprentices.
Contents of Apprenticeship a. Wage rates of apprentices a. Compentencies that will be a. Nature, syllabus, timetable,
Contract shall conform to the rules acquired within the and purpose of training
apprenticeship program
issued by the Secretary of based on the Training Plan b. Period of training,
Labor and Employment and the method of depending on the approved
b. Period of apprenticeship competency assessment training regulations
shall not exceed 6 months. b. The period of training c. Training allowances
c. Wage rates shall not be depending on the approved prescribed by the industry,
below 75% of the Training Plan which in no case shall start
applicable minimum wage c. Training Allowance, which below 75% of the
in no case shall be below applicable minimum wage:
No enterprise shall be allowed to 75% of the applicable provided, however, that
engage apprentices more than 20% minimum wage. contributions
of the total number of its regular d. Schedule of training
employees. allowance payment
e. An undertaking from the
enterprise that it shall
provide a disability and/or
accident insurance policy in
favor of the apprentice
during the apprenticeship
period
f. The general rights and
obligations of both parties,
grounds for termination of
the contract and the
process for the termination
of the apprenticeship
contract.
Incentives An additional deduction from the An additional deduction from the An additional deduction from the
TAXABLE INCOME equivalent to ½ TAXABLE INCOME equivalent to ½ gross income of one-half (½) of the
of the value of training expenses of the value of training expenses labor training expenses incurred
incurred for developing the incurred for developing the from developing the productivity
productivity and efficiency of productivity and efficiency of and efficiency of apprentices shall
apprentices program shall be apprentices program shall be be granted to the person or
granted to the person or enterprise granted to the person or enterprise enterprise organizing an
organizing an apprenticeship organizing an apprenticeship apprenticeship program:
program. program.
Provided, that the employer shall
Such program must be duly Such program must be duly be exempt from the payment of the
recognized by TESDA recognized by TESDA apprenticeship fee and that such
program shall be recognized by
Deduction shall not exceed ten Deduction shall not exceed ten TESDA
percent 10% of direct labor wage percent 10% of direct labor wage
and that the person who wishes to and that the person who wishes to Deduction shall not exceed 10% of
avail of this incentive shall pay the avail of this incentive shall pay the the training allowance of the
apprentices Training Allowance apprentices Training Allowance apprentices.
equivalent to the applicable equivalent to the applicable
minimum wage. minimum wage. Enterprises that wishes to avail of
this incentive shall pay its
apprentices the minimum wage.
Micro-cottage and small enterprises
with less than 100 employees shall
be exempt from paying the
apprenticeship fee.