To control cost, pay review isn't happening for employees with high package. Is this acceptable?

Naksh
Hello All, Seeking some advice here please.
My Annual rating for AYR 2022 was concluded as Meeting Expectations and BHR had also communicated that merit increase will happen.
However, i did not receive any letter and when enquired, it was communicated to me that I am already at a high package and to control cost, pay review isn't happening for employees with high package. Is this acceptable? Does employer have the right to not do a pay review given the situation/explanation above?
Naksh
Just to add this is my 02nd pay review and i am employed with the firm for over 2 years.
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