In the Philippine educational landscape, Technical-Vocational Education and Training (TVET) serves as a critical pillar for economic mobility. The Technical Education and Skills Development Authority (TESDA), established under Republic Act No. 7796 (the TESDA Act of 1994), is the primary regulatory body overseeing these programs. As of 2026, the legal framework governing training fees has become increasingly specialized, particularly with the full integration of the Universal Access to Quality Tertiary Education Act and the newly enacted Enterprise-Based Education and Training (EBET) Framework Act.
1. The Core Legal Mandate: RA 10931
The most significant piece of legislation regarding fees is Republic Act No. 10931, or the Universal Access to Quality Tertiary Education Act. Under this law, the state provides "Free TVET" to qualified Filipino students.
Free TVET in State-Run Institutions
Qualified students enrolled in State-Run Technical-Vocational Institutions (STVIs)—which include TESDA Technology Institutions (TTIs), state universities (SUCs), and local colleges (LUCs) offering TESDA-registered programs—are exempt from paying:
- Tuition fees
- Miscellaneous fees (e.g., library, laboratory, computer, and athletic fees)
- Other school fees (e.g., registration, medical/dental, and ID fees)
- Cost of utilities, facilities, and equipment maintenance
- Honoraria of trainers
2026 Budgetary Context
For the 2026 fiscal year, the Philippine government has allocated approximately P5.05 billion specifically to cover these costs. This ensures that the "No Collection Policy" remains strictly enforceable in all government-operated training centers.
2. Private Technical-Vocational Institutions (TVIs)
Unlike state-run centers, private TVIs operate under a "complementary" role. The legality of their fees depends on whether a student is under a government scholarship.
- Non-Scholarship Basis: Private TVIs are legally allowed to charge training fees for short-term courses. However, these fees must be consistent with the Schedule of Costs approved by the TESDA Board and registered under the Unified TVET Program Registration and Accreditation System (UTPRAS).
- Scholarship Basis: If a student is a beneficiary of programs like the Training for Work Scholarship Program (TWSP), Special Training for Employment Program (STEP), or Private Education Student Financial Assistance (PESFA), the private TVI is generally prohibited from collecting additional tuition or training fees from the student, as the government pays the institution directly.
3. The "No Collection Policy" and Prohibited Fees
TESDA maintains a strict No Collection Policy for scholars. Illegal fee practices include:
- Hidden Fees: Charging "graduation fees," "processing fees," or "insurance fees" that are already covered by the scholarship's miscellaneous allowance.
- Mandatory Purchases: Forcing trainees to buy uniforms or tools from specific suppliers at inflated prices.
- Assessment Fees: For scholars, the cost of the National Competency Assessment is usually integrated into the scholarship. Charging a scholar for their first assessment attempt is generally a violation of TESDA circulars.
Note: Under TESDA Circular No. 043-2025, competency assessment and certification systems are standardized. Private individuals who are not scholars must pay the assessment fee prescribed by the National Tax and Revenue Code and TESDA board resolutions.
4. Ineligibility and Lawful Charging
Not all students are entitled to free training. Under Section 6 of RA 10931, the following individuals are ineligible for Free TVET and may be legally charged fees even in state institutions:
- Those who have already obtained a bachelor's degree.
- Those who have already received a certificate or diploma for a TVET course equivalent to National Certificate (NC) III or higher (unless the new course is a "bundled" qualification).
- Those who fail to comply with the admission or retention policies of the institution.
- Those who fail in any course during the program duration.
5. New Regulatory Developments (2025–2026)
RA 12063: The EBET Framework Act
A major shift in 2026 is the implementation of the Enterprise-Based Education and Training (EBET) Framework Act. This law encourages training within the actual workplace.
- Legality of Fees in EBET: In many apprenticeship and learnership agreements under this act, the "trainee" is often exempt from training fees and may instead receive a training allowance (typically 75% of the minimum wage). Charging a trainee for "on-the-job" instruction in these registered programs may constitute a labor and education law violation.
TESDA Circular No. 142, s. 2026
This recent circular clarifies that "short-term vocational courses" involving Competency Standards (CS) but without full Training Regulations (TR) (formerly known as No-TR programs) must still have their fee structures vetted by the Provincial and Regional Offices to prevent predatory pricing.
6. Summary of Legal Fee Components
| Fee Type | State-Run (STVI) | Private TVI (Non-Scholar) | Private TVI (Scholar) |
|---|---|---|---|
| Tuition | Free | Regulated/Paid by Trainee | Paid by Government |
| Registration | Free | Paid by Trainee | Included in Scholarship |
| Assessment | Free (for first attempt) | Paid by Trainee | Included in Scholarship |
| Learning Materials | Provided | Paid by Trainee | Covered by Allowance |
Penalties for Illegal Collection
Institutions found to be collecting illegal fees face administrative sanctions under the UTPRAS guidelines, including:
- Suspension of scholarship allocations.
- Revocation of the Certificate of Program Registration (CoPR).
- Fines and permanent disqualification from participating in government-funded programs.
In summary, while private institutions retain the right to charge for their services, the law heavily protects students in state-run centers and those under government scholarships from any form of mandatory financial contribution. All fees in the TVET sector must be transparent, documented, and approved by TESDA.