Is handovering the passport to employer is fine?

yes quite a few employers do..but it is NOT a legal requirement. normally in emergencies you do get it back. BUT it creates an uncertainty, and sometimes the system does not work as well.

Also I have another question on the salary package.
How can we make a comparison of the salaries I am getting in India and in Oman. What is the standard salary there.
If we take an example that someone is having 15 lpa CTC in India, out of that after deductions tax etc we get approx 13 lpa in hand. So how much package should we expect in Oman comparatively?

It isn't your passport, it's your government's passport they allow you to use.
Employers all over the world ask to keep them and it leads to a lot of stories on expat forums about how some employers keep the passport to hold the employee.
Personally, I wouldn't let anyone keep such an important document.

When i first joined here, employer also asked to submit the passport. Where my reply was that i will report to police , if you keep my passport in your custody, as such thing is illegal internationally. Never allow such thing to happen.

Most of time when in emergencies you need passport, they have many formalities , which will delay you in attending any emergency.

I work in a school. They only needed my passport at the beginning to complete all my paperwork.

Legally no one can keep any ones passport. Employers only wants to keep your passport to black-mail you in case of emergency and to control your exit/entry from the country .

Hi my name is Nizamuddin shaikh & i m in oman on 30 days visit visa but the employer keep my passport and i dont want to work with him my visa expiry date is 1/08/2024 it means next month but they are forcing me to extend visa so please help & suggest me what to do now