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Federated Learning (FL) revolutionizes collaborative machine learning among Internet of Things (IoT) devices by enabling them to train models collectively while preserving data privacy. FL algorithms fall into two primary categories: synchronous and asynchronous. While synchronous FL efficiently handles straggler devices, its convergence speed and model accuracy can be compromised. In contrast, asynchronous FL allows all devices to participate but incurs high communication overhead and potential model staleness. To overcome these limitations, the paper introduces a semi-synchronous FL framework that uses client tiering based on computing and communication latencies. Clients in different tiers upload their local models at distinct frequencies, striking a balance between straggler mitigation and communication costs. Building on this, the paper proposes the Dynamic client clustering, bandwidth allocation, and local training for semi-synchronous Federated learning (DecantFed) algorithm to dynamically optimize client clustering, bandwidth allocation, and local training workloads in order to maximize data sample processing rates in FL. DecantFed dynamically optimizes client clustering, bandwidth allocation, and local training workloads for maximizing data processing rates in FL. It also adapts client learning rates according to their tiers, thus addressing the model staleness issue. Extensive simulations using benchmark datasets like MNIST and CIFAR-10, under both IID and non-IID scenarios, demonstrate DecantFed’s superior performance. It outperforms FedAvg and FedProx in convergence speed and delivers at least a 28% improvement in model accuracy, compared to FedProx.