The Department of Labor and Employment (DOLE) has recently updated its guidelines for issuing Alien Employment Permits (AEPs) to foreign workers in the Philippines, aiming to enhance efficiency and support local workforce development. The new rules were signed by Labor Secretary Bienvenido Laguesma during the 2025 Central Office – Regional Offices Annual Planning Exercise in Quezon City.
Key changes include a streamlined labor market test, now consolidated into a single publication in a widely circulated newspaper, which cuts down on both costs and waiting times for employers and foreign workers. Additionally, the government’s job-matching portal, PhilJobNet, will now feature these rules, making the process more transparent and accessible.
Secretary Laguesma emphasized that these revised guidelines are a crucial move towards simplifying the requirements and speeding up the processing of employment permits. The aim is to strike a balance between promoting investments, protecting local jobs, and facilitating the transfer of skills to Filipino workers.
A notable aspect of the new guidelines is the introduction of the Understudy Training Program (UTP) and Skills Development Program (SDP). These programs are designed to ensure that Filipino workers gain the necessary skills and knowledge from their foreign counterparts, promoting sustainable workforce development and reducing long-term reliance on foreign labor.
The guidelines also incorporate an Economic Needs Test (ENT) to assess the necessity of hiring foreign nationals, based on the availability of qualified Filipino workers. This measure is intended to protect local employment opportunities and will be subject to public consultations to ensure it remains inclusive and relevant.
These updates align with President Ferdinand R. Marcos Jr.’s directive under Executive Order 18 of 2023, which focuses on attracting foreign direct investments by simplifying business operations. Secretary Laguesma stated that these reforms will expedite processes for employers in priority investment sectors, enhancing the Philippines’ appeal as an investor-friendly destination.
The new guidelines aim to reduce bureaucratic hurdles and expedite government transactions, ensuring that foreign workers contribute to priority sectors, align with national development goals, and respect the rights of Filipino workers. Over the past three years, DOLE has issued 192,573 AEPs to foreign nationals working in various industries.