Rest home operators say the Government is offering them a one percent funding increase this year, which they say, is unacceptable.
They say 7.6 percent is needed and the Government must dig deeper.
The Aged Care Association said members were offered the rise, worth an extra $10 million, in annual contract talks with district health boards recently.
But, it said, costs have risen by more than three percent, and $76 million extra is needed.
The association said the Government offer would prevent a pay rise this year and the quality of care for the elderly is at stake.
It was recommending that members refuse to sign the contract review document.
