DOLE Updates AEP Guidelines for Foreign Employment in PH

Updated AEP Rules

On January 20, 2025, Secretary Bienvenido E. Laguesma of the Department of Labor and Employment (DOLE) signed the DOLE Department Order No. 248, Series of 2025. This order outlines the updated rules on Alien Employment Permits (AEP) for foreign nationals in the Philippines. The ceremonial signing took place during the 2025 Central Office – Regional Offices (CO-RO) Annual Planning Exercise in Quezon City.

Key Attendees

The signing ceremony was witnessed by notable officials including Undersecretaries Atty. Benjo Santos M. Benavidez, Carmela I. Torres, and Atty. Benedicto Ernesto R. Bitonio, Jr.; Assistant Secretaries Amuerfina R. Reyes and Warren I. Miclat; OIC-Assistant Secretaries Patrick P. Patriwirawan, Jr. and Maria Consuelo S. Bacay; OIC-Director Leilani Reynoso; and Regional Directors of the Department.

Significance of the Revised AEP Guidelines

The revised AEP guidelines aim to rationalize requirements and streamline the processing of employment permits for foreign nationals. This initiative balances investment promotion, local labor protection, and ensures the transfer of skills to Filipino workers. Over the past three years, DOLE has issued a total of 192,573 AEPs to foreign nationals engaged in various industries.

Alignment with National Priorities

The strengthened AEP guidelines align with President Ferdinand R. Marcos Jr.’s directive under Executive Order No. 18, Series of 2023. This directive emphasizes attracting foreign direct investments (FDIs) by ensuring ease of doing business. Employers in priority investment sectors will benefit from these reforms through expedited processes, reinforcing the Philippines’ position as a competitive and investor-friendly destination in the region.

Streamlined Processes and New Mechanisms

The new guidelines simplify the conduct of labor market tests, integrating them into one publication in a newspaper of general circulation. This reduces costs and waiting periods for employers and foreign nationals. Additionally, posting on the PhilJobNet, the government’s official job matching portal, will make the process more efficient and transparent.

A notable feature of the DOLE issuance is the establishment of mechanisms to ensure skills transfer and knowledge-sharing between foreign nationals and Filipino counterparts through the Understudy Training Program (UTP) and Skills Development Program (SDP). These programs ensure Filipino counterparts acquire the expertise and competencies necessary to eventually assume roles held by foreign nationals, fostering sustainable workforce development.

Moreover, the guidelines introduce an Economic Needs Test (ENT), a critical criterion for evaluating AEP applications. The ENT assesses the necessity of hiring foreign nationals based on the availability of qualified Filipino workers. This measure aims to safeguard local employment opportunities and will undergo public consultations to ensure inclusivity and relevance.

Conclusion

DOLE remains committed to fostering investments, strengthening workforce development, and promoting inclusive economic growth while protecting local employment opportunities.

Reference: DOLE strengthens AEP Guidelines for the Employment of Foreign Nationals in the Philippines