Prophet (SAW)'s Prayers

Returning Salaam
If a Muslim sends salaams to another, it should returned in this manner
وَعَلَيْهِ السَّلَامُ وَرَحْمَةُ اللَّهِ وَبَرَكَاتُهُ
"On him be safety, Allah's mercy and blessings".
Reply to the person conveying the salaam on behalf of another
وَعَلَيْكَ وَعَلَيْهِ السَّلَامُ
"Safety be on you and him.

(Hinsul Hasin)
Muslim brethren should shake hands with salaams. Prophet Mohammad (S.A.W.) stated that if two Muslims meet and shake hands, their minor sins are forgiven before they part.

It is narrated by Abu Dawood that when Muslims shake hands on meeting, praise Allah and make dua for forgiveness, then they are forgiven.