Nauru's government has stripped the old age pension from people who were involved in a rally outside the country's parliament.

Hundreds of people gathered near the parliament building in June to protest the indefinite suspension of five opposition MPs, a crackdown on free speech and corruption allegations.

Rosavena Bop said she took part in the June rally because her community was not being represented in parliament.

Nauru Ministry of Finance letter advising of pension being withdrawn. ( Supplied )

The 64-year-old was not arrested at the time, nor has she been charged with a criminal offence since.

However, when Ms Bop went to the bank last Thursday to collect her pension, she was told her pension had not been deposited.

"It's not because I'm overseas, it's because I'm part of the protesting," she said.

The next day, Ms Bop received a letter signed by Nauru's finance and justice minister David Adeang.

"Cabinet has been advised that you were involved in the recent riots which took place in June," the letter said.

"It has been approved by cabinet that persons involved in activities such as protests, riots and other criminal activities should not be included in the government welfare payment."

The decision means Ms Bop has lost her fortnightly aged pension of $200.

"I just think it's foolish and selfish and I expect my government to be a government who governs my nation fairly and truthfully and not as they do," Ms Bop said.

Ms Bop said she was not given any warning that her payments would be cut.

"For me it's disgusting. It's not the way you handle your elderly people," she said.

"It is my main source of income, but because I'm so proud of what I stood for I'll have to sacrifice myself for others."

The ABC knows of at least one other elderly Nauruan who has lost their pension.

The Nauru government is yet to respond to several queries from the ABC.

Government targeting all opponents says MP

Five Nauru MPs have not been permitted to take their seats in parliament since June 2014.

Former president Sprent Dabwido, who attended the rally and has been charged with several offences, potentially facing several years in jail, denied the government's claim that June rally was an illegal riot.

Sorry, this video has expired Protests break out in front of Nauru parliament

"Rioting? We did not take batons, we did not take rocks or anything, we did not," he told Pacific Beat.

"We were dressed as members of parliament. We went there to chant. We went there to protest why we've been out of parliament for over a year."

Mr Dabwido said the cutting of pensions is just the latest example of Mr Adeang's persecution of the government's political opponents.

Nauru opposition MP and former president Sprent Dabwido. ( United Nations )

"What the government says will happen to you is what's going to happen to you. They've taken away all our civil rights," he said.

Public servants who took part in the protest have also lost their jobs.

Meanwhile, Nauru's president Baron Waqa is currently in New York where he has addressed the United Nations General Assembly and urged the organisation to be more open and transparent.

"History has demonstrated that openness and engagement have proven far more effective strategies for positive change than isolation and exclusion," Mr Waqa told the UN.

Last month New Zealand suspended its aid to Nauru's justice sector citing concerns over the rule of law on the island nation.

Sorry, this audio has expired Nauru government targets pensions of protesters ( Liam Fox )

And on Thursday, Prime Minister Malcolm Turnbull was forced to address concerns about the safety of asylum seekers on Nauru after a series of rape allegations, saying that Australia's Government was working with Nauru to provide a "safe environment".

Mr Dabwido said the Australian Government, which pays Nauru tens of millions of dollars each year to host an asylum processing centre, should take action to ensure the rule of law is upheld.

"I'm hoping they realise that they have more say in Nauru. At least send a neutral party to do their own investigation," he said.