It's a misconcept that pay raise and layoff don't coexist

You need to prepare for a formal talk. Be confident, be professional in your discussion. Don't go in the meeting as if you're begging like a dumped girl.

It's pretty silly to think that someone would get axed because his/her pay is higher. Management looks at performance and perceived value of an individual first. And clearly your boss values your presence. No better time to negotiate.