My company generally keeps up with inflation, and that 7% would be on top of that. That specific scenario for me was about 4 years ago (I'm now 10 years in with a Masters and I'm just a midlevel dev making less than $100k).
Last year I got a bad rating because there was extreme context switching and I was "slow" (management was terrible and said they expected to burn people in a year or two). So I got almost nothing at the end of the year - effectively a 4.5% pay cut.
