RAMON E.

FREJAS
 “Technical
Educational and Skills
Development Act of 1994”
 SECTION 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.
 SECTION 3. Statement of Goals and Objectives

Encourage
Promote and critical and Inculcate
strengthen the creative thinking desirable
by Recognize and values through
quality of
Focus technical disseminating encourage the the
technical
education and the scientific complementary development of
education
skills and technical roles of public moral
and skills
development on knowledge base and private character with
development
meeting the of middle-level institutions in emphasis on
programs to
changing manpower technical work ethic, self-
attain
demands for development education and discipline, self-
international
quality middle- programs; skills reliance and
competitiveness.
level development nationalism.
manpower; and training
systems; and
 SECTION 4. Definition of Terms

1. “Skill” 4. “Trade” 7. “Trainers”

10.“Apprenticeship”

5. “Middle-Level 8. “Trainors/
2. “Skills
Manpower” trainers”
Development”

11.“Apprentice”
3. “Technical 6. “Private
9. “Trainees”
Education” Enterprises”
 12. “Apprenticeship Agreement” 15. “User-Led” or “Market-Driven Strategy”

13. “Apprenticeable Occupation” 16.“Dual System/Training”

14.“Learners” 17. “Levy Grant System”

 SECTION 5. Technical Education and Skills Development
Authority

To implement the policy

declared in this Act, there is hereby created a Technical Education and
Skills Development Authority (TESDA), hereinafter referred to as the
Authority, which shall replace and absorb the National Manpower  and
Youth Council (NMYC), the Bureau of Technical and Vocational
Education (BTVE) and the personnel and functions pertaining to
technical-vocational education in the regional offices of the Department
of Education, Culture and Sports (DECS) and the apprenticeship
program of the Bureau of  Local Employment of the Department of
Labor and Employment.
 SEC. 6. Composition of the Authority

The Authority shall be composed of the TESDA

Board and the TESDA Secretariat
SEC. 7. Composition of the TESDA Board
The Secretary of Labor and Employment Chairperson
         
Secretary of Education, Culture and
Co-Chairperson
Sports

Secretary of Trade and Industry Co-Chairperson

Secretary of Agriculture Member

Secretary of Interior and Local

Member
Government
Director-General of the TESDA
Member
Secretariat
 SEC. 8. Powers and Functions of the Board
The Authority shall primarily be responsible for formulating, continuing, coordinated and
fully integrated technical education and skills development policies, plans and programs
taking into consideration the following:
a) the State policy declared herein of giving new direction and thrusts to efforts in
developing the quality of Filipino human resource through technical education and
skills development;
b) the implementation of the above-mentioned policy requires the coordination and
cooperation of policies, plans, and programs of different concerned sectors of Philippine
society;
c) equal participation of representatives of industry groups, trade associations,
employers, workers and government shall be made the rule in order to ensure that
urgent needs and recommendations are readily addressed; and
d) improved linkages between industry, labor and government shall be given priority in
the formulation of any national-level plan.
 SEC. 9. Power to Review and Recommend
Action
The Authority shall review and recommend action to
concerned authorities on proposed technical assistance
programs and grants-inaid for technical education or
skills development, or both, including those which may be
entered into between the Government of the Philippines
and other nations, including international and foreign
organizations, both here and abroad.
 SEC. 10. The TESDA Secretariat
There is hereby created a technical education and skills development authority
secretariat which shall have the following functions and responsibilities:
a) To establish and maintain a planning process and formulate a national technical
education and skills development plan in which the member-agencies and other
concerned entities of the authority at various levels participate;
b) To provide analytical inputs to policy decision-making of the authority on allocation
of resources and institutional roles and responsibilities as shall be embodied in annual
agencies technical education and skills development plans, in accordance with the
manpower plan for middle-level skilled workers as approved by the authority;
c) to recommend measures, and implement the same upon approval by the Authority, for the
effective and efficient implementation of the national technical education and skills
development plan;
d) to propose to the Authority the specific allocation of resources for the programs and projects
it shall undertake pursuant to approved national technical education and skills development
plan;
e) to submit to the Authority periodic reports on the progress and accomplishment of work
programs of implementation of plans and policies for technical educational and skills
development;
f) to prepare for approval by the Authority an annual report to the President on technical
education and skills development;
g) to implement and administer the apprenticeship program as provided for in Section 18 of this
Act;
h) to prepare and implement upon approval by the Authority a program for the training of
trainers, supervisors, planners and managers as provided for in Section 23 of this Act;
i) to enter into agreement to implement approved plans and programs and perform activities as
shall implement the declared policy of this Act; and
j) to perform such other functions and duties as may be assigned by the Board.
 SEC. 11. Director-General

The TESDA secretariat shall be headed by a director-general, who shall likewise be a

member of the TESDA board. The director-general shall be appointed by the president of
the Philippines and shall enjoy the benefits, privileges ad emoluments equivalent to the
rank of undersecretary.

SEC. 12. Deputy Directors-General

The director-general shall be assisted by two (2) deputy directors-general to be appointed
by the president of the Philippines on recommendation of the TESDA board. One to be
responsible for vocational and technical education and training and one to be responsible
for policies and planning.
 SEC. 13. Chief of Services for Administration

The director-general shall also be assisted by a chief of services for administration

who shall be a career civil service official to be appointed by the TESDA board.

SEC. 14. STRUCTURAL ORGANIZATION AND

PERSONNEL
The TESDA secretariat, in addition to the offices of the director-general, deputy
director-general and chief of services for administration shall be composed of the
following offices to be headed by an executive director to be appointed by the
director-general and shall have the rank and emoluments of director IV.
a.) Planning Office (PO)
b) Skills Standards and Certification Office (SSCO).
c) National Institute for Technical Vocational and Education Training (NITVET).
d) Office of Formal Technical Vocational Education and Training (OFFVET).
e) Office of the Non-Formal Technical-Vocational Education and Training (ONFTVET).
f) Office of Apprenticeship (OA).
g) Regional TESDA Offices.
 SEC. 15. The Provincial TESDA Offices

The Provincial Offices shall be headed by Skill Development Officers

who shall have the rank and emoluments of a Director III.

SEC. 16. Compliance with the Salaries

Standardization Law
The compensation and emoluments of the officials and employees of
the Authority shall be in accordance with the salary standardization
law and other applicable laws under the national compensation and
classification plan.
 SEC. 17. Consultants and Technical Assistance,
Publication and Research
In pursuing its objectives, the Authority 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
skills development. It shall avail itself of the services
of other agencies of the Government as may be
required.
 SEC. 18. Transfer of the Apprenticeship
Program
The Apprenticeship Program of the Bureau of
Local Employment of the Department of Labor and
Employment shall be transferred to the Authority
which shall implement and administer said
program in accordance with existing laws, rules
and regulations.
 SEC. 19. Technical Education and Skills
Development Committees
The Authority shall establish Technical Education and Skills
Development Committees at the regional and local levels to
coordinate and monitor the delivery of all skills development
activities by the public and private sectors. These committees shall
likewise serve as the Technical Education and Skills Development
Committees of the Regional and local development councils. The
composition of the Technical Education and Skills Development
Committees shall be determined by the Director-General subject to
the guidelines to be promulgated by the Authority.
 SEC. 20. Skills Development Centers
The Authority shall strengthen the network of national, regional and local skills training
centers for the purpose of promoting skills development.

SEC. 21. Formulation of a Comprehensive

Development Plan for Middle-Level Manpower
The Authority shall formulate a comprehensive development plan for middle-level manpower based on a
national employment plan or policies for the optimum allocation, development and utilization of skilled
workers for employment entrepreneurship and technology development for economic and social growth.
This plan shall, after adoption by the Authority, be updated periodically and submitted to the President of
the Philippines for approval. Thereafter, it shall be the plan for technical education and skills
development for the entire country within the framework of the National Development Plan. The Authority
shall direct the TESDA Secretariat to call on its member agencies, the private sector and the academe to
assist in this effort.
 SEC. 22. Establishment and Administration of
National Trade Skills Standards
There shall be national occupational skills standards to be
established by TESDA-accredited industry committees. The
Authority shall develop and implement a certification and
accreditation program in which private industry groups and
trade associations are accredited to conduct approved trade
tests, and the local government units to promote such trade
testing activities in their respective areas in accordance with
the guidelines to be set by the Authority.
 SEC. 23. Administration of Training Programs

The Authority 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
educational and skills development and related opportunities. Such
training programs and schemes shall include teacher’s trainors’
training, skills training for entrepreneur development and
technology development, cost-effective training in occupational
trades and related fields of employment, and value development as
an integral component of all skills training programs.
 SEC. 24. Assistance to Employers and
Organizations
The Authority shall assist any employer or
organization engaged in skills training
schemes designed to attain its objectives
under rules and regulations which the
Authority shall establish for this purpose.
 SEC. 25. Coordination of All Skills Training
Schemes
In order to integrate the national skills development efforts, all
technical education and skills training schemes as provided for in
this Act shall be coordinated with the Authority particularly those
having to do with the setting of trade skills standards. For this
purpose, existing technical education and skills training programs
in the Government and in the private sector, specifically those
wholly or partly financed with government funds, shall be reported
to the Authority which shall assess and evaluate such programs to
ensure their efficiency and effectiveness.
 SEC. 26. Industry Boards

The Authority shall establish effective and efficient

institutional arrangements with industry boards and such
other bodies or associations to provide direct participation
of employers and workers in the design and
implementation of skills development schemes, trade
skills standardization and certification and such other
functions in the fulfillment of the Authority’s objectives.
 SEC. 27. Incentives Schemes

The Authority shall develop and administer

appropriate incentives schemes to encourage
government and private industries and
institutions to provide high-quality technical
education and skills development
opportunities.
 SEC. 28. Skills Development Opportunities

The Authority shall design and implement an effective

and efficient delivery system for quality technical
education and skills development opportunities
particularly in disadvantaged sectors, 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.
 SEC. 29. Devolution of TESDA’s Training
Function to Local Governments
In establishing the delivery system provided for in the preceding
Section, the Authority shall formulate, implement and finance a
specific plan to develop the capability of local government units to
assume ultimately the responsibility for effectively providing
community-based technical education and skills development
opportunities: Provided, however, That there shall be formulated
and implemented, an effective and timely retraining of TESDA
personnel that would be affected by the devolution to ensure their
being retained if the concerned local government units would not be
able to absorb them.
 SEC. 30. Skills Olympics

To promote quality skills development in the country and with

the view of participating in international skills competitions,
the Authority, with the active participation of private
industries, shall organize and conduct annual National Skills
Olympics. The Authority, through the TESDA Secretariat, shall
promulgate the necessary rules and guidelines for the effective
and efficient conduct of Annual National Skills Olympics and
for the country’s participation in international skills Olympics.
 SEC. 31. The TESDA Development Fund

A TESDA Development Fund is hereby established, to

be managed/administered by the Authority, the
income from which shall be utilized exclusively in
awarding of grants and providing assistance to
training institutions, industries, local government
units for upgrading their capabilities and to develop
and implement training and training-related activities.
 SEC 32. Scholarship Grants
The Authority shall adopt a system of allocation and funding of scholarship
grants which shall be responsive to the technical education and skills
development needs of the different regions in the country.

SEC 33. TESDA Budget

The amount necessary to finance the initial implementation of this Act shall
be charged against the existing appropriations of the NMYC and the BTVE.
Thereafter, such funds as may be necessary for the continued
implementation of this Act shall be included in the annual General
Appropriations Act.
 SEC 34. Transitory Provisions

SEC 35. Automatic review

Every five (5) years, after the effectivity of this Act, an

independent review panel composed of three (3) persons
appointed by the President shall review the performance of the
Authority and shall make recommendations, based on its
findings to the President and to both Houses of Congress.
 SEC. 36. Implementing Rules and Guidelines
The TESDA Board shall issue, within a period of ninety (90) days
after the effectivity of this Act, the rules and regulations for the
effective implementation of this Act.

SEC. 37. Repealing Clause

All laws, presidential decrees, executive orders, presidential
proclamation, rules and regulations or parts thereof contrary to or
inconsistent with this Act are hereby repealed or modified
accordingly.
 SEC. 38. Separability Clause

If any provision of this Act is declared unconstitutional, the same

shall not affect the validity and effectivity of the other provisions
hereof.

SEC. 39. Effectivity

This Act shall take effect fifteen (15) days after its complete
publication in two (2) newspapers of general circulation.