The document provides information on the Dual Training System (DTS) in the Philippines. The DTS combines in-school technical and vocational training with on-the-job training at participating companies. Trainees spend 40% of time at technical vocational institutions for theoretical learning, and 60% of time at companies for practical skills development. The DTS aims to enhance trainee employability and is governed by laws and agreements between schools and companies. While the DTS provides benefits, challenges include monitoring trainee contracts and the need for technical vocational institutions to keep skills aligned with industry needs. Recommendations include improving cooperation between all DTS stakeholders and helping small companies participate.

1. Dual Education
Training System

3. DUAL TRAINING
SYSTEM
TOJON, MARY GRACE V.
MAIE

4.  an instructional delivery system of
technical, vocational education and training
that combines in-plant 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 participating establishments.
The duration of the in-school and in-plant
training under this system shall not be more
than the duration of the registered program
of the TVI.

5. In-plant Training – the portion of a DTS
Program/DTP where student/trainee
receives practical learning by being
integrated in the regular work system of
an establishment.
In-school Training – the portion of a DTS
Program/DTP where student/trainee
receives technology-based theoretical
instruction in a lecture area and hands-on
exercises in a laboratory and/or a
workshop within the premises of a TVI.

6.  is a training modality combining
theoretical and practical training.
The phrase “Dual Training”
suggests that training occurs in
two venues: the academic
institution and the firm.

9. Dual Training System in
the Philippines

10. The DTS Programs and Dualized Training Programs shall
be implemented pursuant to the provisions of the following
laws:
1. Section 4 of Rule VI of Republic Act No. 7796,
otherwise known as the Technical Education and Skills
Development Act of 1994, which states that “TESDA shall
implement Republic Act. No. 7686, otherwise known as the
Dual Training System (DTS) Act of 1994”, and lend support
and encourage increasing utilization of the Dual Training
System as provided for in the aforementioned Act.

11. 2. Republic Act No. 7686, otherwise known as the
Dual Training System (DTS) Act of 1994.

12. Objectives
The objectives of the Dual Training System Act are:
a) To encourage increasing utilization of the DTS
by both public and private TVIs;
b) To encourage increasing levels of investment
in TVET by both public and private sectors
especially in the rural areas;

13. c) To enhance the employability and productivity
of TVET graduates by equipping them with
cognitive, psychomotor, and affective skills that are
demanded at the workplace; and
d) To strengthen cooperation in human resource
development between establishments and TVIs by
designing and implementing market-led TVET
programs in coordination with the Local
Government Units (LGUs) concerned.

14. Under the DTS, the student/trainee learning
process can generally be described as 40%
in-school to learn the theories, develop basic
skills and the value formation. The remaining
60% will be in-establishment to actualize the
learning earned in the school.

16. In- Establishment (60%)
Skills Proficiency
Actual Work Condition
Emphasis on Economic
Performance
Productivity
In- School ( 40 %)
Theoretical
Basic Skills
Values & Human Formation
General Education

17. Partnership Between the Training
Vocational Institution (TVI) and the Firm
The partnership between the training institution
and the establishment (firm) is formalized through a
Memorandum of Agreement (MOA). In addition, a
Training Agreement is also confirmed by all parties,
including the trainee’s parent or guardian for the in-plant
training. A training plan is prepared to synchronize the
schedule of the knowledge and skills to be learned by
the trainees in school and the actual work exercises to
be done in the workplace (firm).

18. Another important feature of the DTS is
the designation of the Industrial Coordinator.
The industrial coordinator is a school-based
staff who monitors the performance of the
trainees in the workplace and makes sure
that right skills are learned according to the
prepared training plan. For the firm, an In-
Plant Trainer is also assigned.

19. The In-Plant Trainer is
an establishment-based
trainer who makes sure that
the trainee/student is trained
in the required skills
according to the training
plan.

20. The DTS also states the need for a
Training Station in the establishment where
the trainees can perform their in-plant
training. The training station must have the
complete facilities and equipment needed for
training.

22. Partnership
between the
School and
Establishment
MOA
Training
Plan
Industrial
Coordinator
In- plant
Trainers
Training
Station

24. For the block release, the trainee spends
full time in the school to finish the forty
percent (40%) school curriculum and is
then deployed, full time, in the
establishment to finish the sixty percent
(60%) in-plant training.

25. For the day release, the student spends
1 to 2 days in the school and then 3 to 4
days in the establishment per week.

26. The DTS law also states that for the duration of
the training:
trainee is not considered an employee of the
establishment but a trainee of both the
educational institution and the establishment.
 receive seventy-five percent (75%) of the
applicable minimum wage from the
establishment
given priority employment in that establishment.

28. The DTS law provides incentives for the
firms and training institutions that participate in
the DTS program. For the firms, the following
are incentives provided by the DTA law:
a) Deduction from the firm’s taxable income, the
amount of fifty percent (50%) of the actual system
expenses paid to the Accredited Dual Training
System Educational Institution for the
establishment trainees;

29. b) Donation, contribution, bequest, subsidy, or financial
aid actually paid or made for the operation of the
system within the taxable year shall also be deductible
for income tax purposes in an amount not in excess of
three percent (3%) of the taxable business income of
the establishment computed without benefit of the
deduction;
c) Exemption from donor’s tax, provided, however, that
not more than thirty percent (30%) of said gifts shall be
used by the System for administration purposes
pursuant to Section 94(a) of the National Internal
Revenue Council (NIRC), as amended.

30. Similar to DTS, another mechanism called the
Dualized Training Program (DTP) is also being
implemented in the country. The only difference
between the DTS and the DTP is in the form of
payment of training allowance to the trainees. In the
DTP, the partner company is not obliged to provide
the 75% monetary payment. Instead, the firm can
provide such in the form of non-monetary benefit like
food/meal, transportation, accommodation and
uniform equivalent to 75% of the minimum wage.

31. Dual Training System (DTS)
Capacity in
the Philippines

32. As of March 2016, there are 108 TVIs offering
DTP/DTS and 706 DTS partner companies offering training
for various sectors such as Agriculture and Fishery,
Automotive and Land Transportation, Construction,
Electronics, Garments Human Health / Health Care,
Heating, Ventilation, Air-conditioning and Refrigeration,
Information and Communication Technology, Metals and
Engineering, Processed Food and Beverages, Tourism
(Hotel and Restaurant), and other qualifications without
training regulations. Annex 2 shows the number of firms
and TVIs involved in the DTS and DTP, classified according
to Industry type and Regional location.

33. Challenges on the Dual Training System
( DTS) Program

34. While studies have shown that enterprise-based training, such as
the DTS, is the way to go in the practice of TVET in the country and
should be given greater emphasis by the government, the number of
trainees under this program, as reported by the TESDA is small.
Orbeta and Esguerra (2016) identified some potential constraints
to the practice of enterprise based programs.
 incompatibilities of underlying incentives and possible sources of
financing
 problem of monitoring the in-firm wage-training contracts.
The authors argued that difficulty in monitoring the in-firm wage-
training contract means that it is difficult to enforce this particular
provision of the DTS law and therefore can be used by the firms to avoid
paying the appropriate benefits.

35. On the part of TESDA, scholarship programs such as
the TWSP and FASPE apparently do not include trainees
under the enterprise-based programs, such as the DTS.
This may be one of the reasons why the number of
trainees under the DTS program is small.

36. Best Practices in TVET (DTS)
in the Philippine Setting

37. For 25 years, CS Garment, Inc. (CSGI) has been constantly
providing its clients with professional and quality shirts and line
services. The company was founded in 1989 by Mr. Claus
Sudhoff and began its operation in 1990. Together with Mrs.
Concisa Atutubo Sudhoff, and through innovation, hard work
and determination, the company rose swiftly to prominence in
garment manufacturing. Strategically based in the Philippines,
CSGI mainly caters to the European market that seeks the most
competitive and high quality products.

38. In 1995, the company implemented its “Dual Training System” (DTS)
program, which aims at developing the skills and competencies of
the youth through theoretical and practical training. Both the
theoretical and practical parts of the course are conducted in the
company by qualified educators. After a period of theoretical training,
the trainees are transferred to the actual production area to
familiarize and learn the different manufacturing processes. If the
trainees pass the theoretical and practical examinations and acquire
the necessary requirements, they are given a Certificate of
Completion signed by both TESDA (Technical Education and Skill
Development Authority of the Philippines) and CSGI. Graduates of
DTS are now locally and internationally employed not only as sewers
but also as holders of key positions in the production process.

39. Maricel Bongon-Malibiran, a graduate of DTS and current
employee of CSGI, hails the benefits of dual vocational
education. As a fresh high school graduate, she joined the
18-month German Dual Training System at CS Garment and
eventually became an employee, staying for 18 years. She
started as a sewer, then a line leader, and now she is
working as a trainer in CSGI-DTS. “The advantage of DTS
in my career is that I became a multi-skilled person.” Now as
a trainer, she is able to share and impart all of her valuable
experiences to persons joining the DTS today. She
envisions that the Philippines will succeed in adapting the
German educational system especially in technology.

40. (Photo from left to right: Maricel
Malibiran, Concisa Sudhoff, Portia
Atutubo Alibanban)

41. Lufthansa Technik Philippines (LTP) is a joint venture of
Lufthansa Technik Germany and Macro Asia Philippines,
founded in 2000. Its core business is to provide
maintenance, repair and overhaul to civilian aircraft
worldwide. LTP is always determined to achieve the
highest level of safety performance. They ensure that
safety is the primary responsibility of all managers and
employees by providing all the necessary resources and
by adopting proven best practices in the industry.

42. Michael D. Deypalubos, a graduate of
the Philippine State College of
Aeronautics in Pasay City. He has taken
part in the Maintenance Training
Program for four months, and has
passed the exams for the theoretical
component. He is looking forward to the
next phase, which is the on-the-job field
training. For him, vocational education
offers better career opportunities.
Michael: “By training you will gain a lot of
knowledge and skills that you don´t really
learn at school.” Photo right to left: Victor B. Delos Santos, Jr. and his
trainee Michael D. Deypalubos)

43. BAG Electronics (Bronzewarenfabrik Aktien Gesellschaft),
formerly called Trilux Electronics and Luminaires, Inc., started
its Philippine operation in 1998. It is affiliated with Trilux GmbH
& Co. KG, which is a leading technical luminaires manufacturer
in Europe since 1912, with headquarters in Arnsberg,
Germany.

44. One of the trainees, Christian
Marc Allen A. Tia, who is taking up
Electromechanics (a two year course)
at the Dualtech Training Center,
shares his experiences in the
program. Christian believes that being
a trainee at BAG electronics will give
him a competitive edge because it
broadens his knowledge in electronic
components. Christian enjoys this
program “because I can experience
the actual work and see how the
product really works.” (Photo from left to right: Mr. Roland Odenthal
General Manager, Christian Marc Allen A. Tia)

45. In Germany, Continental is the market leader in tire
production. The company has evolved over the years from
a pure tire manufacturer to one of the largest automotive
suppliers in the world. Continental is a German-owned
company with headquarters in Hannover, and with
presence in 317 locations in 50 countries all over the world
and a total number of around 189,168 employees.

46. In 2007, as part of the company’s “People’s
Development Initiatives”, Continental collaborated with
Don Bosco College to develop vocational courses that
will fit in with Continental’s needs. These courses are
Industrial Automation and Mechatronics Technology. The
students are taken in as junior employees of
Continental, while the company supports their vocational
study and training by financing their tuition fees and
materials for school projects.

48. Häfele Philippines, Inc. (HPI), is one of the
Asian subsidiaries of Häfele Germany based in
Nagold, Germany. Established in 1996, HPI has
been engaged in the Hardware, Engineering and
Architectural Products business for almost two
decades.

49. Marph Ronel Bilbao , a 19 year
old trainee enrolled since March
2015, is completing his on-the-
job hours. For Marph, “the
vocational course is good, as
the course is a practical way for
me to complete an education
and pursue a career, since I
can’t afford the regular college
tuition and educational fees.”

50. FINDINGS AND RECOMMENDATION S
The DTS program produces substantial positive
spillover effects on DTS trained workers – they become
more productive, as shown by the substantial long-run
productivity difference between a DTS-trained and Non
DTS-trained workers. In addition, one-in-three DTS
trainee is employed by the firm that trained them. Higher
probability of being employed is the trademark of the
enterprise-based program such as the DTS, over other
modes of training.

51. While there is a clear advantage for firms to
participate in the DTS program, the success of the program
will depend on the individual actions and cooperation
among the three key players in running the DTS: TESDA,
TVIs, and the Firms. The Technical Vocational Institutions
(TVIs) have important roles to play to make sure the
practice of DTS is successful. One common problem
experienced by firms taking in DTS trainees is that TVIs
have difficulty in catching up with the latest technology and
new skill sets expected by the firms from the DTS trainees.

52. There seems to be a gap between the skills learned
by the trainees in school (TVIs) and the practice at the
workplace (firms). A recommendation for the TVI is for:
• The TVIs should be flexible enough to catch up with the
changes in technology through capacity building of the TVI
trainers. Partnering with the firms where the firms’ training
personnel to actually train the instructors of the TVIs on the
use of the latest technology may be an area that TVIs
should look into.

53. Some of the recommendations for TESDA are the following:
• Need to have an update or census of the TVIs, to identify
which TVIs are doing DTS, how many students doing DTS
and who are the TVIs’ firm-partners. The current list of TVIs
and firms under TESDA’s monitoring office should be
evaluated regularly since the research team noted that a
number of firms on the list have either closed shop or are
no longer involved in the DTS program.
• To properly monitor the employment rate of the DTS
trainees in TESDA and to validate if the employment is in
the formal sector or informal sector (type of industry or
services)

54.  help firms, particularly micro-enterprises where the
average cost of doing DTS is relatively high, on how to
avail of the government incentives, such as tax incentives,
related to the DTS program. The procedures on how to
apply for the incentives for the firms should be clarified
and simplified.
 to engage the companies in these (Construction and
Motor Vehicle Repair) to find out how the costs of running
the DTS program can be reduced. At the current state,
given the high overall costs per trainee, this may create a
disincentive for other firms in the same sector to
participate in the DTS program.

55.  to find ways on how MSMEs can be provided with
training assistance for the DTS trainees through the
Training for Work and Scholarship Program TWSP.
 Review the DTS Law for possible amendments in
Congress.

56. References
O https://www.bibb.de/dokumente/pdf/TESDA_costbenefit-
tesda_oct_7_2016_interactive.pdf.
O http://www.regional-tvet-conference-
laos.org/kontext/controllers/document.php/24.a/c/7b6c1c.
pdf
O http://tesda.gov.ph/about/tesda/91
O https://www.google.com/search?q=dual+training+system
+of+tesda&biw=1366&bih=637&source=lnms&tbm=isch&
sa=X&ved=0ahUKEwiDjcWYmYDVAhVELpQKHTl7DDs
Q_AUICCgD#imgdii=yvlG_YGhWe5VSM:&imgrc=7ykL-
CJebuypYM:

57. THANK YOU!