May be time to move on?

Hi recently got a promotion and raise. They gave me a 12% raise, which I was fine with until I find out the other person in the same position that has been there 3 years less than I have is making 25% more after the raise. I brought it up to my boss and they basically said that person wasn’t a great hire and not much they could do, and the team shouldn’t be asking each others salary. They have a masters degree in an unrelated field, but otherwise experience is very similar. Do you think its fair that they still make 25% with about 1/4 of the workload?

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