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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
House Bill  No._____ 
Introduced by: Congressman BIENVENIDO M. ABANTE, JR. 
AN ACT 
CREATING THE DEPARTMENT OF TECHNICAL EDUCATION AND SKILLS 
DEVELOPMENT, DEFINING ITS POWERS AND FUNCTIONS, REPEALING 
FOR THE PURPOSE THE REPUBLIC ACT NO. 7796, OTHERWISE KNOWN AS 
THE TESDA ACT OF 1994 AND APPROPRIATING FUNDS THEREFOR 
EXPLANATORY NOTE 
          The Constitution provides that: the State shall promote a just and dynamic 
social order that will ensure the prosperity and independence of the nation and free 
the people from poverty through policies that provide adequate social services, 
promote full employment, a rising standard of living, and improved quality of life for 
all (Sec. 9, Art. II); the State shall promote social justice in all phases of national 
development (Sec. 10, Art. II); the State shall give priority to education, science and 
technology, arts, culture, and sports to foster patriotism and nationalism, accelerate 
social progress, and promote total human liberation and development (Sec. 17, Art. II); 
the Congress shall give highest priority to the enactment of measures that reduce 
social, economic, and political inequalities (Sec.1, Art. XIII); the State shall encourage 
non-formal, informal, and indigenous learning systems, as well as self-learning, 
independent, and out-of-school study programs particularly those that respond to 
community needs (Sec 2[4], Art. XIV); and Science and technology are essential for 
national development and progress. The State shall give priority to research and 
development, invention, innovation, and their utilization; and to science and 
technology education, training, and services. It shall support indigenous, appropriate, 
and self-reliant scientific and technological capabilities, and their application to the 
country’s productive systems and national life (Sec. 10, Art. XIV).  
          In this regard, the Technical Education and Skills Development Authority 
(TESDA), which was created by virtue of Republic Act 7796, otherwise known as the 
“Technical Education and Skills Development Act of 1994,” is the government agency 
tasked to manage and supervise technical education and skills development in the 
Philippines. TESDA’s vision is to be a transformational leader in the technical 
education and skills development of the Filipino workforce, with a mission of setting 
directions, promulgating relevant standards, and implementing programs geared 
August 5, 2025
12:07 pm
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towards a quality-assured and inclusive technical education and skills development 
and certification system.  
          Under the bill, the proposed Department of Technical Education and Skills 
Development (DTESD) shall be the primary policy formulation, planning, 
coordinating, implementing, regulatory, and administrative entity of the government 
for technical education and training programs. With its gargantuan task, it is believed 
that by converting it into a Department, TESDA will be strengthened as an 
implementing and regulatory institution of the technical and vocational sector. It will 
put this Agency in a better position to fulfill its vision and mission, believing in 
demonstrated competence, institutional integrity, personal commitment, a culture of 
innovativeness, and a deep sense of nationalism. 
The early passage of this Bill, therefore, is earnestly requested. 
 BIENVENIDO M. ABANTE, JR. 


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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
House Bill  No._____ 
Introduced by: Congressman BIENVENIDO M. ABANTE, JR. 
AN ACT 
CREATING THE DEPARTMENT OF TECHNICAL EDUCATION AND SKILLS 
DEVELOPMENT, DEFINING ITS POWERS AND FUNCTIONS, REPEALING 
FOR THE PURPOSE THE REPUBLIC ACT NO. 7796, OTHERWISE KNOWN AS 
THE TESDA ACT OF 1994 AND APPROPRIATING FUNDS THEREFOR 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
          SECTION 1. Short Title. – This Act shall be known as the “Department of 
Technical Education and Skills Development (DTESD) Act”. 
          SEC. 2. Declaration of Policy. – It is hereby declared the policy of the State to 
provide relevant, accessible, high-quality, and efficient technical education and skills 
development in support of the development of high-quality Filipino middle-level 
manpower responsive to and in accordance with Philippine development goals and 
priorities. The State shall encourage active participation of private technical-
vocational institutions (TVIs) and private enterprises, being direct participants in and 
immediate beneficiaries of a technically educated and trained skilled workforce, in 
providing technical education services and training opportunities. 
          SEC. 3. Statement of Goals and Objectives. The goals of the DTESD are as 
follows: 
a.
International Competitiveness. - To promote and strengthen the quality of technical
education 
and  
skills 
development 
programs 
to 
attain 
international
competitiveness;
b.
Quality Middle-Level Manpower. - To focus technical education and skills
development on meeting the changing demands for quality middle-level
manpower and work environment, both in the national and international
community;
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c. 
Scientific and Technical Knowledge Base. - To encourage critical and creative 
thinking by disseminating the scientific and technical knowledge base of middle-
level manpower development, training, and programs; 
 
d. Role of Public and Private Institutions. - To recognize and encourage the 
complementary role of  public and private institutions in technical education and 
skills development and training systems; and 
 
e. Desirable Values. - To inculcate desirable values through the development of moral 
character, with emphasis on work ethics of honesty, integrity, and punctuality, 
self-discipline, self-reliance, and nationalism. 
 
The objectives of the DTESD are: 
a. Promotion and strengthening of the quality of technical education and skills 
development, training, and programs to attain global competitiveness and spur 
economic growth; 
 
b. Focus on technical education and skills development to meet the changing 
demands for quality manpower globally, as well as the changing work 
environment; 
 
c. 
 Encouragement of critical and creative thinking by disseminating the scientific 
and technical knowledge base of manpower development, training, and 
programs; 
 
d. Recognition and encouragement of the complementary roles of public and private 
institutions, enterprises, local government units (LGUs), and civil society 
organizations (CSOs) in technical education and skills development; 
 
e. Development of the capacities of stakeholders to participate in the planning and 
delivery of quality technical education and skills development systems; 
 
f. 
 Inculcating desirable values through the development of moral character, with 
emphasis on work ethics of honesty, integrity, and punctuality, self-discipline, 
self-reliance, and nationalism;  
 
g. Strong support to the implementation of the Philippine Qualification Framework 
Act (R.A. 10968), the Ladderized Education Program (R.A. 10647) and the Dual 
Training System (R.A. 7686), and other pertinent laws, decrees, and orders on 
education; 
 
h. Maximizing returns to the country’s investment in technical education and skills 
development through an efficient graduates’ employment-facilitation program 
within the framework of the national employment service network system; and 
 


 
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i. 
 Supporting the poverty alleviation efforts of the government by providing the 
marginalized and vulnerable segments of the country’s population access to 
income-generating technical education and skills development opportunities. 
 
     SEC. 4. Definition of Terms. – As used in this Act: 
a. Apprenticeship refers to on-the-job practical training with compulsory related 
theoretical instructions involving a contract between an apprentice and an 
employer on an approved apprenticeable occupation. 
 
b. Apprentice refers to a person undergoing training for an approved apprenticeable 
occupation during an apprenticeship agreement; 
 
c. 
Apprenticeship Agreement refers to a contract wherein a prospective employer 
binds himself to train the apprentice, who in turn accepts the terms of training for 
a recognized apprenticeable occupation, emphasizing the rights, duties, and 
responsibilities of each party. 
 
d. Apprenticeable Occupation refers to an occupation officially endorsed by a 
tripartite body and approved as apprenticeable by the Department. 
 
e. Dual Training System refers to an instructional delivery system of technical and 
vocational education and training that combines in-plant training and in-school 
training based on a training plan collaboratively designed and implemented by 
an accredited dual system educational institution/training center and accredited 
dual system agricultural, industrial, and business establishments with prior 
notice and advice to the local government unit concerned. Under this system, 
said establishments and the educational institution share the responsibility of 
providing the trainee with the best possible job qualifications, the former 
essentially through practical training and the latter by securing an adequate level 
of specific, general, and occupation-related theoretical instruction. The word 
“dual” refers to the two parties providing instruction: the concept “system” 
means that the two instructing parties do not operate independently of one 
another, but rather coordinate their efforts. 
 
f. 
Ladderized education refers to the harmonization of all education and training 
mechanisms that allow students and workers to progress between technical, 
vocational, and higher education programs, or vice versa. It opens opportunities 
for career and educational advancement to students and workers. It creates a 
seamless and borderless education and training system that will allow transfers 
in terms of flexible entry and exit between technical-vocational and higher 
education programs in the post-secondary school educational system. 
 
g. Leading Technology Center refers to centers that provide high-quality and efficient 
technical education, training, and certification in support of the development of 
high-quality Filipino manpower responsive to and in accordance with Philippine 


 
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development goals and priorities. 
 
h. Learner refers to persons hired as trainees in semi-skilled and other industrial 
occupations that are non-apprenticeable. Learnership programs must be 
approved by the Department. 
 
i. 
Levy Grant System refers to a legal contribution from participating employers who 
would be beneficiaries of the program (often as a percentage of the payroll), which 
is subsequently turned over or rebated to enterprises offering employee training 
programs. 
 
j. 
Middle-Level Manpower refers to those: 
 
i) 
Who have acquired practical skills and knowledge through formal or 
non-formal education and training equivalent to at least a secondary 
education, but preferably at post-secondary education with a 
corresponding degree or diploma; or 
 
ii) Skilled workers who have become highly competent in their trade or 
craft, as attested by the industry. 
 
iii) Philippine Qualifications Framework (PQF) refers to the national policy 
that describes the levels of educational qualifications and sets the 
standards for qualification outcomes. It is a quality-assured national 
system for the development, recognition, and award of qualifications 
based on standards of knowledge, skills, and values acquired in 
different ways and methods by learners and workers of a certain 
country. 
 
iv) Private Enterprise refers to an economic system under which property 
of all kinds can be privately owned and in which individuals, alone or 
in association with others, can embark on a business activity. This 
includes but is not limited to industrial, agricultural, or agro-industrial 
establishments engaged in the production, manufacturing, processing, 
repacking, or assembly of goods, 
including service-oriented 
enterprises. 
 
v) Skill refers to the acquired and practiced ability to carry out a task or 
job. 
 
vi) Skills Development refers to the process through which learners and 
workers are systematically provided with learning opportunities to 
acquire or upgrade, or both, their ability, knowledge, and behavior 
patterns required as qualifications for a job or range of jobs in a given 
occupational area. 
 


 
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vii) Technical Education refers to the education process designed at upper 
secondary and lower tertiary levels, aligned with the levels of the PQF, 
with the pathways to higher education through the credit transfer 
system based on learning outcomes aimed at preparing technicians, 
technologists, para-professionals, and other categories of workers 
and/or entrepreneurs by providing them with a broad range of general 
education, theoretical, scientific and technological studies, and related 
job skills training. 
 
viii) Trade refers to any group of interrelated jobs or any occupation that is 
traditionally or officially recognized as a craft or artisan in nature, 
requiring specific qualifications that can be acquired through work 
experience and/or training; 
 
ix) Trainee refers to persons who are participants in a vocational, 
administrative, or technical training program for the purpose of 
acquiring and developing job-related skills; 
 
x) Trainer refers to persons who direct the practice of skills towards 
immediate improvement in some task; 
 
xi) User-Led” or “Market-Driven Strategy refers to a strategy that promotes 
strengthened linkages between educational/training institutions and 
industry to ensure that appropriate skills and knowledge are provided 
by the educational system; 
 
SEC. 5. Creation and Mandate of the Department of Technical Education and 
Skills Development. – There is hereby created a Department of Technical Education 
and Skills Development, hereinafter referred to as DTESD. The DTESD shall be the 
primary policy formulation, planning, coordinating, implementing, regulatory, and 
administrative entity of the government for technical education and skills 
development programs. 
SEC. 6. Powers and Functions. – The DTESD shall have the following powers 
and functions: 
a) Formulate a roadmap for Philippine technical education and skills 
development and set the general directions for education and training policies and 
standards that shall be embodied in a National Technical Education and Skills 
Development Plan (NTESDP); 
 
b) Formulate and recommend national policies and guidelines and conduct in-
depth studies on all policy areas and options that will promote technical education 
and skills development in consultation with the relevant stakeholders, and address 
job mismatch between technical vocational education and training and industry 
requirements; 
 


 
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c) Assess, review, harmonize, and coordinate all technical education and skills 
development policies and programs to ensure overall relevance, consistency, 
responsiveness, effectiveness, and efficient implementation of the national policies; 
 
d) Organize and constitute various standing committees, subsidiary groups, or 
technical working groups for efficient integration, coordination, and monitoring of 
technical education and skills development programs at the national, regional, and 
local levels; 
 
e) Enter into, make, execute, perform, and carry out domestic and foreign 
contracts for the purpose of attaining its goals and objectives as provided for in this 
Act, subject to existing laws, rules, and regulations; 
 
f) Restructure the entire sub-sector consisting of all institutions and programs 
involved in the promotion and development of middle-level manpower through 
upgrading, merger, and/or phase-out following a user-led or market-driven strategy; 
 
g) Approve training standards and assessment packages as established, 
conducted, and proven effective by private industries; 
 
h) Establish and administer a system of accreditation of both public and private 
technical vocational institutions; 
 
i) Establish, develop, and support trainers’ training and/or programs; 
 
j) Impose reasonable fees and charges for such assessment and pieces of training 
conducted and retain such earnings for its own use, subject to guidelines that it shall 
promulgate and to government auditing rules and procedures; 
 
k) Allocate resources for the programs and projects it shall undertake pursuant to 
the approved NTESDP, subject to pertinent laws, rules, and regulations; 
 
l) Determine and approve systematic funding schemes such as the levy and grant 
scheme for technical education and skills development purposes; 
 
m) Create, when deemed necessary, an Advisory Committee that shall provide 
expert and technical advice to the Secretary of the Department to be chosen from the 
academe and the private sector. Provided, That in case the Advisory Committee is 
created, the Department is authorized to set aside a portion of its appropriation for 
the Committee’s operations; 
 
n) Formulate or review and recommend actions to concerned authorities on 
proposed technical assistance programs and grants-in-aid for technical education and 
skills development, including those which may be entered into between the 
Government and other nations, including international or foreign organizations, 
whether doing business in the Philippines or not; 


 
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o) Promulgate rules and regulations for the full, effective, and efficient 
implementation of its policies and related laws; and 
 
p) Perform such other functions as may be needed to achieve its goals and 
objectives to the fullest and as may be provided by this Act. 
 
SEC. 7. Composition. - The DTESD shall be composed of the Offices of the 
Department Secretary, the Undersecretaries, the Assistant Secretaries, and their 
immediate support staff. It shall also have bureaus, as well as regional and provincial 
or district offices. The Office of the Secretary shall be in the main office of the 
Department. 
 
SEC. 8. Powers and Functions of the Secretary. - The Secretary of the DTESD shall 
have the following functions: 
a) Provide executive direction and supervision over the entire operations of the 
DTESD; 
 
b) Organize the DTESD for the efficient and effective performance of its 
functions so as to achieve its goals and objectives under this Act; 
 
c) Represent and effectively 
advocate technical education and 
skills 
development (TESD) concerns in national and international bodies; 
 
d) Establish TESD policies and standards for the effective, efficient, and 
economical operation of the DTESD, consistent with and in accordance with 
the annual programs of the government; 
 
e) Mobilize resources and ensure prudent utilization of and access to TESD 
investments and incentives according to national development plans and 
priorities; 
 
f) Designate and appoint Regional Directors and other officers and employees 
of the DTESD, excluding the Undersecretaries and Assistant Secretaries, 
subject to and in accordance with Civil Service Laws, rules, and regulations; 
 
g) Undertake consultations with other members of the Cabinet and officers of 
the government relating to TESD concerns; 
 
h) Advise the President on the promulgation of executive and administrative 
orders and formulation of regulatory and legislative proposals on matters 
pertaining to TESD; 
 
i) Promulgate rules, regulations, and other issuances as may be necessary to 
carry out the DTESD’s mandate, objective, policies, plans, programs, goals, 


 
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and projects; 
 
j) Direct and manage the implementation of DTESD’s programs and services; 
and 
 
k) Perform such other functions as may be authorized by law. 
 
          SEC. 9. Undersecretaries and Assistant Secretaries. - The DTESD Secretary shall 
be assisted by three (3) Undersecretaries and three (3) Assistant Secretaries who shall 
be appointed by the President upon recommendation of the DTESD Secretary: 
Provided, that two (2) Undersecretaries and two (2) Assistant Secretaries shall be career 
officers. 
 
The Undersecretaries and Assistant Secretaries shall assist the Secretary in the 
performance of his powers and functions under this Act in order to fully achieve the 
goals and objectives of the DTESD. The Undersecretaries and Assistant Secretaries 
shall be given specific areas of responsibility by the Secretary. 
 
          SEC. 10. Qualifications and Appointments. – No Secretary, Undersecretary, or 
Assistant Secretary of the DTESD shall be appointed unless he/she is a natural-born 
Filipino citizen, a resident of the Philippines, of good moral character, of proven 
integrity, a college degree graduate, a Civil Service eligible or its equivalent, and with 
at least five (5) years of experience in technical education skills and development. 
 
          SEC. 11. Bureaus, Services, and Personnel. – The bureaus which shall be under 
the Office of the Secretary shall be headed by an Executive Director to be appointed 
by the President upon the recommendation of the Secretary. The Executive Director 
shall have the rank and emoluments of Director IV and shall have the same 
qualifications as those of the Secretary, Undersecretary, and Assistant Secretary of the 
DTESD. 
 
          SEC. 12. Regional Office – There shall be established a Regional Office in each 
region of the country to be headed by a Regional Director to be appointed by the 
President upon the recommendation of the Secretary. A Regional Director shall have 
the rank and emoluments of Director IV and shall have the same qualifications as 
those of the Secretary, Undersecretary, and Assistant Secretary of the DTESD. The 
Regional Directors shall have the following functions: 
 
a) Direct the implementation of TESD programs, projects, and related 
activities in the region; 
 
b) Develop and recommend to the Secretary for approval TESD programs for 
local- level implementation within set policies; 
 
c) 
Disseminate  policies to stakeholders; 
 


 
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d) Manage TESD resources in the region; 
 
e) Plan and implement policy inputs in the region; 
 
f) 
Monitor and evaluate program implementation; and 
 
g) Perform such other functions as may be directed by the Secretary or as may be 
provided by law, rules or regulations, or executive issuances. 
 
          SEC. 13. The Provincial/District Offices.- The Provincial/District Office shall be 
headed by a Provincial/District Director to be appointed by the Secretary of the 
DTESD.  
 
          A Provincial/District Director shall have the rank and emoluments of Director 
III who shall be a natural-born Filipino citizen, a resident of the Province or District 
where he is appointed, of good moral character, of proven integrity, a college degree 
graduate, a Civil Service eligible, and with at least two  (2) years of experience in 
technical education skills and development. A Provincial/District Director shall have 
the following functions: 
 
a) Serve as secretariat to the Provincial Technical Education and Skills 
Development Committee; 
 
b) Provide technical assistance to the local government units for effective 
supervision, coordination, and integration of all technical education and 
training programs within their localities; 
 
c) 
Review and recommend to the Secretary priority technical education and 
training programs within their localities; and 
 
d) Perform such other functions as may be authorized or directed by the 
Secretary,  
 
          SEC. 14. Technical Education and Training Centers. - The DTESD shall absorb 
and enhance existing government Technical Education and Training Centers, 
including the Cordillera State Institute of Technical Education or CSITE, as provided 
under Republic Act No. 11192, and establish a network of national, regional, and local 
technical education and skills development centers for the purpose of promoting 
technical education and skills development. This network shall include leading 
training technology centers, training centers in vocational and technical schools, 
technical institutes, polytechnic colleges, and all other duly accredited public and 
private dual-system educational institutions. The technical education and skills 
development centers shall be administered and operated under such rules and 
regulations as may be established by the DTESD in accordance with the National 


 
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Technical Education and Skills Development Plan. These centers and schools shall 
have the following functions: 
 
a) Provide responsive formal and non-formal TESD programs; 
 
b) Conduct applied research and development programs and provide extension 
services in coordination with Regional Offices (ROs)/Provincial Offices (POs); 
 
c) 
Undertake entrepreneurship development program; 
 
d) Conduct outreach programs in coordination with ROs/POs; 
 
e) Provide job linkages; 
 
f) 
Provide assessment and certification; 
 
g) Devise mechanisms for sustainable operation and development; 
 
h) Monitor and evaluate program implementation; and 
 
i) 
Perform such other functions as may be authorized by law, rules, or 
regulations, including executive issuances. 
 
        SEC. 15. Structure and Staffing Pattern. - Subject to the approval of the DBM, the 
DTESD, through the Office of the Secretary, shall determine its organizational 
structure, staffing, pattern, qualification standards, and placement of personnel in the 
DTESD who shall be appointed in accordance with the civil service law, rules, and 
regulations. 
 
          SEC. 16. Compliance with the Salary Standardization Law. - The compensation 
and emoluments of the officials and employees of the DTESD shall be in accordance 
with the salary standardization law and other applicable laws under the national 
compensation and clarification plan. 
 
         SEC. 17. Consultants and Technical Assistance, Publication and Research. - 
In pursuance of its objectives, the DTESD is hereby authorized to set aside a 
portion of its appropriation for the hiring of services of qualified consultants and 
private organizations for research work and publication in the field of technical 
education and training. It shall avail itself of the services of other agencies of the 
Government as may be necessary or required. 
 
          SEC. 18. Formulation of a Comprehensive Development Plan for Middle-Level 
Manpower. - The DTESD shall formulate a comprehensive development plan for 
middle manpower based on a national employment plan or policies for the optimum 


 
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allocation, development, and utilization of skilled workers for employment, 
entrepreneurship, and technology development for economic and social growth. This 
plan shall be updated periodically and submitted to the President for approval. 
Thereafter, it shall be the plan for the technical education, training, and certification 
for the entire country within the framework of the National Development Plan. The 
DTESD may, through its various offices, call on public agencies, the private sector, 
and academe for assistance in the full and efficient implementation of this 
comprehensive plan.  
 
The comprehensive plan shall provide for a reformed industry-based training 
program, including apprenticeship, dual training system, and other similar 
schemes intended to: 
 
a) Promote maximum protection and welfare of the worker-trainee; 
 
b) Improve the quality, relevance, and social accountability of technical 
education and training; 
 
c) Accelerate the employment generation effort of the government; and 
 
d) Expand the range of opportunities for upward social mobility of students 
beyond the traditional higher levels of formal education. All agencies 
receiving financial and technical assistance from the government shall be 
required to formulate their respective annual agency technical education and 
training plans and programs. The budget to support such plans and programs 
shall be subject to review and endorsement by the DTESD to the DBM. The 
DTESD shall evaluate the efficiency and effectiveness of an agency’s skills 
development program and schemes to make them conform to the quantitative 
and qualitative objectives of the national technical education and skills 
development plan. 
 
          SEC. 19. Technical Education and Skills Development Committees. - The 
DTESD shall establish Technical Education and Skills Development Committees for 
the regional and local development councils to coordinate and monitor the delivery 
of all training activities by the public and private sectors, and recommend policies, 
programs and projects to better carry out the objectives of this Act. The composition 
of these Committees shall be determined by the Secretary. 
 
          SEC. 20. Enterprise-Based Training Program. - The DTESD shall promote 
enterprise-based Training as the major mode of training rather than an employment 
arrangement and shall see to it that it is not subject to abuse by unscrupulous entities. 
 
          SEC. 21. Establishment and Administration of National Training Standards. - 
There shall be national training standards to be established by DTESD-accredited 
industry committees. The DTESD shall develop and implement a certification and 
accreditation program in which private industry groups and trade associations are 


 
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accredited to conduct approved assessment packages. The local government units 
shall promote these assessment packages in their respective areas in accordance with 
the guidelines set by the DTESD. 
 
The Secretary shall determine the occupational trades for mandatory certification. All 
certificates relating to the national training standards and certification system shall be 
issued by the DTESD through its Regional and Provincial Offices. 
 
 In consonance with the Philippine Qualifications Framework (PQF), the DTESD shall 
closely collaborate with the Professional Regulation Commission (PRC) as regards the 
assessment of technicians, master craftsmen, and technologists. 
 
          SEC. 22. Administration of Training Programs. - The DTESD shall design and 
administer training programs and schemes that will develop the capabilities of public 
and private institutions to provide quality and cost-effective technical education and 
skills development and related opportunities. Such training programs and schemes 
shall include teachers’/trainers’ training in occupational trades and related fields of 
employment and values development as an integral component of all technical 
education and training programs. 
 
          SEC. 23. Assistance to Employers and Organizations. - The DTESD shall assist 
employers or organizations engaged in technical education and training schemes 
designed to attain its objectives under the rules and regulations established for the 
purpose. 
 
          SEC. 24. Accreditation and Regulation of Technical Education and Skills 
Development Programs. - All technical education and skills development programs 
shall be duly accredited by the DTESD before it is offered to the public by any public 
or private entity or non-government organization. 
          Non-compliance with the accreditation requirements of the DTESD shall be a 
basis for the suspension or cancellation of the entity’s license to operate issued by 
competent authorities. 
 
          SEC. 25. Coordination of All Technical Education and Skills Development 
Schemes. – In order to integrate the national technical education and skills 
development efforts, all technical education and skills development programs and 
schemes as provided for in this Act shall comply with national standards as 
determined by the DTESD, particularly those having to do with competency 
standards. For this purpose, existing technical education and skills development 
programs in the Government and in the private sector, specifically those wholly or 
partly financed with government funds, shall be reported to the DTESD for 
assessment and evaluation to ensure their efficiency and effectiveness. 
 
          Non-compliance with these standards including reportorial requirements shall 
be a disqualification from any form of government assistance in the field of technical 
education and skills development. 


 
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          SEC. 26. Enterprise-based Partnerships and Linkages. - The DTESD shall 
establish effective and efficient institutional arrangements with industry bodies and 
such other organizations or associations to ensure direct participation of employers 
and workers in the design and implementation of technical education and skills 
development schemes, competency standardization and certification, and such other 
functions in the fulfillment of the DTESD’s objectives. 
 
          SEC. 27. Inclusive Training Opportunities. - The DTESD shall likewise design 
and implement a delivery system for community-based technical education and 
skills development opportunities for the marginalized and disadvantaged sectors of 
the population, including the beneficiaries of Pantawid Pamilyang Pilipino Program 
(4Ps) as provided under Republic Act No. 11310 or the Pantawid Pamilyang Pilipino 
Program Act, providing them with new tools of wealth creation and with the 
capability to take on higher value-added gainful activities, and to share equitably in 
productivity gains eventually leading to poverty alleviation and reduction. 
          SEC. 28. Skills Competitions. - To promote quality technical education and skills 
development in the country and with the view of participating in international skills 
competitions, the DTESD, with the active participation of private industries, shall 
organize and conduct annual National Skills competitions. 
 
          The DTESD shall promulgate the necessary rules and guidelines for the effective 
and efficient conduct of National Skills competitions and for the country’s 
participation in international Skills competitions such as ASEAN and World Skills 
Olympics. 
 
          SEC. 29. The TESD Development Fund. - A Technical Education and Skills 
Development Fund is hereby established to be managed/administered by the DTESD, 
the income from which shall be utilized exclusively in awarding of grants and 
providing assistance to training institutions, industries, and local government units 
for upgrading their capabilities and to develop and implement skills development 
training and training-related activities. 
 
 The contribution to the fund shall be the following: 
 
a) A one-time lump sum appropriation from the National Government; 
 
b) An annual contribution from the Overseas Workers Welfare Administration 
Fund, the amount of which shall be determined by the Overseas Workers 
Welfare Administration and based on the study on the financing capacity of 
the OWWA fund; 
 
c) Donations, grants, endowments, and other bequests or gifts, and any other 
income generated by the DTESD. 
 
The Secretary shall be the administrator of the fund, and as such, shall formulate the 


 
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necessary implementing guidelines for the management of the fund, subject to the 
following: 
 
a) Unless otherwise stipulated by the private donor, only earnings of private 
contributions shall be used; and 
 
b) No part of the seed capital of the fund, including earnings, thereof, shall be 
used to underwrite expenses for the administration of the Fund. 
 
The Secretary shall appoint a reputable government-accredited investment 
institution as the fund manager, subject to existing government rules and 
regulations. 
 
SEC. 30. Technical Assistance, Incentives, and Scholarship Grants. - The 
DTESD shall adopt a system of providing technical assistance, incentives, and 
scholarship grants which shall be designed to encourage public and private sector and 
clientele participation in technical education and training activities along the priorities 
identified by the National Development Plan/Agenda. 
 
SEC. 31. Placement Centers. - There shall be established a network of placement 
centers or PLACERS in all the Provincial/District Offices to cater specifically to 
the job placement of graduates of TESD institutions. These Centers shall be financed 
and administered by the DTESD. In coordination with the Department of Labor and 
Employment (DOLE), these centers shall be part of the National Employment Service 
Network of the DOLE. 
 
SEC. 32. Separation and Retirement from Service. - Employees who are 
separated from service within six (6) months from the effectivity of this Act as a result 
of the abolition/reorganization under the provisions of this Act shall receive 
separation benefits to which they may be entitled under existing laws, orders and 
issuances: Provided, that those who are qualified to retire under existing retirement 
laws shall be allowed to retire and receive retirement benefits to which they may be 
entitled under applicable laws, orders, and issuances. 
 
SEC. 33. Transitory Provision. – The Technical Education and Skills 
Development (TESDA)  and the TESDA Board created under Republic Act No. 7796 
are hereby abolished. 
 
The TESDA Secretariat created under Sections 10-15 of R.A. 7796 shall comprise the 
initial manpower complement of the DTESD, Provided, that, no employee shall be 
terminated by virtue of this transfer. The laws and rules on government 
reorganization as provided under Republic Act No. 6656, otherwise known as the 
Reorganization Law, shall govern the transfer and reorganization process of the 
DTESD. 
 
The personnel of the TESDA shall, in a holdover capacity, continue to perform their 


 
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respective duties and responsibilities and receive their corresponding salaries and 
benefits until such time when the organizational structure pattern of the DTESD shall 
have been approved and implemented. Provided, That the preparation and approval 
of the new organizational structure and staffing pattern shall, as far as practicable, 
respect and ensure the security of tenure and seniority rights of affected employees. 
Those personnel whose positions are not included in the new staffing pattern or who 
are not reappointed or who choose to be separated as a result of the reorganization 
shall be paid their separation and retirement benefits under existing laws. 
 
SEC. 34. Appropriations. - The amount needed for the initial implementation 
of this Act shall be taken from the current fiscal year’s appropriation of TESDA. 
Thereafter, the amount needed for the operation and maintenance of the DTESD shall 
be included in the General Appropriations Act. 
 
SEC. 35. Implementing Rules and Regulations.- The DTESD, Department of 
Education, Department of Labor and Employment, Department of Budget and 
Management, and the Department of Finance shall, in consultation with other 
government agencies and concerned stakeholders, promulgate the implementing 
rules and regulations to effectively and efficiently carry out the provisions of this 
Act: Provided, That the non-promulgation of such rules and regulations shall not 
prevent the immediate implementation of this Act upon effectivity thereof. 
 
SEC. 36. Separability Clause. - If, for any reason, any portion or provision of 
this Act shall be held unconstitutional or invalid, the remaining provisions not 
affected thereby shall continue to be in full force and effect. 
 
SEC. 37. Repealing Clause. - Republic Act No. 7796, otherwise known as the 
“TESDA Act of 1994,” is hereby repealed. All laws, presidential decrees, executive 
orders, rules and regulations, issuances, or parts thereof which are inconsistent with 
or contrary to the provisions of this Act are hereby deemed repealed, amended, or 
modified accordingly. 
 
SEC. 38. Effectivity. - This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in a newspaper of general circulation.