[giberson]

The company (any company and or manager) will try to get away with paying you as little money as possible. Even if it's below industry/region average, even if they know you're worth a hell of a lot more. They will offer the lowest pay bumps they think they can get away with.

You have to ask for more to get what you're worth. And it doesn't hurt to ask, worst case is they will say it's not in the budget (even then it's usually not a firm no).

The trick is during your review you have to say you want more. You have to present a case that you're worth more. And it's not even a hard or complicated case to make.

If you know what the industry standard is in your area and you're underpaid say "I think I deserve a pay bump of <gap + 5k>. The average rate for programmers here is <x> so I should be at least making <gap> and you just told me I'm doing a great job, so I think I deserve a little more than average."

In all seriousness I'm basing this on past experiences (both myself and colleagues). You probably deserve more than you're being paid. The company will easily pay more than they offer by a little and most likely by a lot (if you're a good negotiator and make a good case).

The key is: ask for more, justify by reminding them you do a good job.