This is what my Manager told us (Names changed, of course)

Hey guys, I fought with the management to you get you guys a good increment this year. Although our outcome was just about average, we all have put in extra time to get the job done. However, you guys won't be getting any increments this year as Jeff told Jen his package and as per our pay equality norms we have to raise their package. Hence, all the budget will be allocated to Jen and Ali. I tried my best, but you guys will be getting only 2% increment this year